Supreme Court Issues Notice On Challenge To HC Order Quashing FIR Against HDFC Bank CEO Sashidhar Jagdishan
Kirit Singhania
29 May 2026 12:30 PM IST
The Supreme Court on Friday issued notice in a challenge to the Bombay High Court's May 5, 2026, judgment quashing FIR against HDFC Bank Managing Director and Chief Executive Officer Sashidhar Jagdishan.
The FIRs stemmed from allegations that Jagdishan colluded with certain former trustees of the Lilavati Kirtilal Mehta Medical Trust and allegedly received illegal payments of about Rs 2 Crore from trust funds.
A Bench of Justices M.M. Sundresh and Nongmeikapam Kotiswar Singh remarked that it was not presently inclined to interfere with the broader findings of the High Court, which had quashed the FIRs.
However, the Bench orally observed that allegations regarding any personal benefit allegedly derived by specific individuals may still require examination.
The Bench indicated that a limited investigation into those specific allegations could be considered. It thereafter issued a notice and granted time for filing a counter affidavit. The matter was then posted for further consideration.
Senior Advocate Mukul Rohatgi, appearing for HDFC Bank, argued that the FIRs were a fallout of the long-running dispute between factions of the Mehta family and recovery proceedings initiated by the bank. He submitted that the bank and its CEO were being drawn into internal disputes within the trust. He further contended that the allegations lacked any substantive material.
Rohatgi also pointed out that several FIRs had already been registered against various trustees and family members on related allegations. He submitted that neither HDFC Bank nor Jagdishan had been named as accused in those cases.
Appearing for the Lilavati Trust, counsel argued that the allegations against Jagdishan were distinct and related to the period when certain trustees controlled the Trust. It was submitted that if any individual had personally benefited from Trust funds, the matter warranted investigation irrespective of the larger disputes surrounding the Trust.
Background
The dispute arose from recovery proceedings initiated by HDFC Bank against entities controlled by the Mehta family. In October 2004, the DRT issued a recovery certificate for Rs. 14.74 crore, and the outstanding dues are stated to have grown to over Rs. 65 crores.
Following the death of Kishore Mehta on May 20, 2024, complaints were filed against HDFC Bank MD & CEO Sashidhar Jagdishan and other officials, culminating in FIRs registered on May 31, 2025 alleging collusion with former trustees of the Lilavati Kirtilal Mehta Medical Trust and receipt of illegal payments from trust funds.
The Bombay High Court found that the criminal complaint was closely linked to the ongoing recovery proceedings and internal disputes within the Trust. The Court observed:
“The complaint is a fallout of the recovery proceedings initiated against the Lilavati Trust. There is serious acrimony, distrust and strained relations to the core between the erstwhile trustees and present trustees. When the new trustees took over, several recovery proceedings had already been initiated. Even today dues to the extent of Rs. 65 crores are yet to be recovered.”
Quashing the FIRs, the Court held that the proceedings lacked bona fides and noted that “a personal vendetta writ large on the face of proceedings for recovery” was evident. It concluded that continuation of the investigation would amount to “an abuse of the process of court.”