New Delhi: HDFC Bank has confirmed that an FIR has been lodged against its Managing Director and CEO Sashidhar Jagdishan by the Mehta family, which had defaulted on a loan disbursed in 1995. The bank, in a disclosure to stock exchanges on Sunday evening, described the move as a “retaliatory” legal action and reaffirmed its intent to pursue all lawful means to recover dues.

The controversy stems from a loan extended to Splendour Gems Limited, a company owned by the Mehta family. According to HDFC Bank, the firm defaulted in 2001 on credit facilities sanctioned in 1995 by the bank and other members of a lending consortium.

In 2004, the Debt Recovery Tribunal issued a recovery certificate in favour of the lenders, but the bank says the amount remains substantially unpaid even after multiple enforcement attempts.

As of May 31, 2025, the outstanding dues towards HDFC Bank, including interest, amount to approximately Rs 65.22 crore.

Mehta family’s legal counteractions dismissed

HDFC Bank said the Mehta family has initiated “multiple legal actions and complaints” against the bank and its senior management. These include criminal complaints, minority rights petitions, and representations to regulators—“all of which have been dismissed or are under legal challenge,” the bank noted.

The latest action comes through a complaint filed by Lilavati Kirtilal Medical Trust, associated with the Mehta family, naming HDFC Bank’s MD and CEO.

Bank terms complaint “malicious” and “false”

In a sharply worded response, HDFC Bank said:

“HDFC Bank unequivocally rejects and strongly condemns the malicious and baseless allegations levelled and maintains that these allegations are completely false, outrageous and constitute a gross misuse of the legal process.”

The bank accused the Mehta family of making deliberate attempts to derail recovery efforts.

“These actions (by the Mehta family) are a deliberate attempt to obstruct and undermine legitimate recovery proceedings related to substantial long-outstanding dues owed by Splendour Gems Limited.”

The bank added that after failing in multiple legal avenues, the individuals have resorted to “personal attacks” on the bank’s leadership in a calculated attempt to “malign their reputation and intimidate HDFC Bank into halting its recovery actions.”

HDFC Bank reiterated its adherence to the highest standards of corporate governance and ethical practices.

“HDFC Bank's governance framework is designed to uphold transparency, accountability, and ethical conduct in all its operations,” the bank said.

It also stressed that robust internal controls and compliance mechanisms are in place to meet legal and regulatory obligations.

“HDFC Bank’s commitment to ethical conduct is reflected in its policies, procedures and actions.”

In conclusion, the bank reaffirmed its stand:

“HDFC Bank will continue to pursue all lawful remedies to recover public funds and address the retaliatory actions taken by the Mehta family as well as to defend the reputation and integrity of the Bank, its Directors and other employees.”