Mumbai, June 19 – In a significant development, HDFC Bank CEO Sashidhar Jagdishan has approached the Bombay High Court seeking to quash an FIR filed against him by the Lilavati Kirtilal Mehta Medical Trust, which has alleged a bribery demand of ₹2 crore for facilitating certain trust-related financial matters.
The case stems from a complaint lodged by a trustee of the Lilavati Trust, a prominent Mumbai-based healthcare institution, claiming that intermediaries associated with HDFC Bank demanded a bribe in return for expedited processing and approval of certain financial transactions and facilities.
FIR Details and Allegations
The FIR, filed under sections of the Prevention of Corruption Act and Indian Penal Code, implicates senior HDFC Bank officials and alleges institutional complicity in seeking unlawful gratification from a charitable trust. According to the complaint, the bribe was demanded during discussions related to fund allocations and management of assets tied to the trust.
Though Jagdishan is not directly accused of demanding the bribe, the complaint names him in his capacity as CEO, citing institutional accountability.
CEO’s Legal Stand
In his plea to the Bombay High Court, Jagdishan has argued that the FIR is baseless, malicious, and aimed at tarnishing his reputation. He contends that the complaint lacks concrete evidence and relies on conjecture rather than verifiable facts. His legal team has requested the FIR be quashed to prevent further harassment and misuse of legal provisions.
Sources close to the bank said, “HDFC Bank stands by its core principles of integrity and transparency. We believe this issue will be resolved through due legal process.”
Lilavati Trust's Position
The Lilavati Trust, known for operating the Lilavati Hospital in Mumbai, has maintained that the complaint is based on genuine grievance and that the matter should be investigated impartially. “We were pressured to consider unethical financial dealings,” one trustee alleged anonymously.
The Trust has also filed a supplementary affidavit to oppose the quashing petition, stating that the involvement of top-level banking officials cannot be ignored when systemic irregularities are alleged.
Corporate Governance Under Scrutiny
This case puts a spotlight on the interplay between private banking institutions and charitable trusts, especially at a time when regulatory scrutiny is tightening across sectors. Legal experts say the case could set precedent for how institutional responsibility is handled in bribery allegations involving CEOs.
What’s Next?
The Bombay High Court is expected to hear the matter next week, where both parties will present their initial arguments. Observers believe the outcome could significantly impact how CEOs are held accountable for the actions of their subordinates in India’s corporate and banking sectors.
FAQs:
Q1. Why did the HDFC Bank CEO move the Bombay High Court?
The HDFC Bank CEO, Sashidhar Jagdishan, approached the Bombay High Court to quash an FIR filed by the Lilavati Trust, which alleges a ₹2 crore bribe demand involving the bank.
Q2. What are the allegations made by the Lilavati Trust?
Lilavati Trust claims that certain individuals linked to HDFC Bank demanded a ₹2 crore bribe for facilitating trust-related financial approvals and asset management.
Q3. Is the CEO personally accused of demanding the bribe?
No, the CEO is not personally accused of demanding the bribe, but he is named in the FIR in his official capacity as head of the institution.
Q4. What legal charges does the FIR include?
The FIR invokes sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act, pertaining to bribery, conspiracy, and abuse of position.
Q5. What is HDFC Bank’s official stance on the matter?
HDFC Bank has denied any wrongdoing and maintains that the allegations are baseless. The bank supports a fair legal process and stands by its CEO.
Published on 19th june
Publisher : SMITA
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