The Supreme Court on Friday refused to grant interim protection to HDFC Bank Managing Director and CEO Sashidhar Jagdishan in a bribery case linked to a governance dispute at Mumbai’s Lilavati Hospital, directing him to pursue his legal remedies before the Bombay High Court, where his plea for quashing the FIR is scheduled for hearing on July 14.
A bench comprising Justices P.S. Narasimha and R. Mahadevan observed that although the Bombay High Court had witnessed multiple judicial recusals in the matter, it is now finally listed for hearing. “We are informed that the matter is listed before the Bombay High Court on July 14. In view of this, we are not inclined to entertain this petition,” the court said in its order.
The bench added that Jagdishan’s quashing plea had been listed earlier on June 18, 25, and 26, but could not be taken up due to recusals by judges. “In this background, we hope and trust that the high court will take up the matter on the designated date,” it said.
Senior advocate Mukul Rohatgi, appearing for Jagdishan, urged the Supreme Court to stay the criminal proceedings, arguing that the FIR was “frivolous” and intended to harass a senior banking executive. “I have nothing to do with the inter se disputes among the trustees of Lilavati,” Rohatgi said. “The idea is to summon the MD to the police station and create havoc for the bank.”
However, the Supreme Court remained unmoved. “You make all these arguments before the high court,” the bench responded.
Bribery Allegations and FIR
The case originates from a May 29 FIR filed by Mumbai’s Bandra Police, based on a complaint from the Lilavati Kirtilal Mehta Medical Trust, which runs the prestigious Lilavati Hospital in Bandra. The FIR accuses Jagdishan of accepting ₹2.05 crore in bribes between March 2022 and June 2023 to favour a faction led by former trustee Chetan Mehta in internal Trust matters.
The charges invoked include Sections 406, 409, and 420 of the Indian Penal Code, covering criminal breach of trust and cheating. The Trust alleged that Jagdishan misused his position to interfere in governance, aiding one faction’s dominance over others. A CBI investigation has also been publicly demanded by the Trust.
A Dispute Deepened by Tragedy
The controversy has been exacerbated by internal tensions within the Trust following the April 2024 death of Kishor Mehta, a founding trustee. His son Prashant Mehta alleged that the revival of loan recovery proceedings by HDFC Bank against their family-linked firm Splendour Gems Ltd—formerly Beautiful Diamonds Ltd—led to harassment that contributed to his father’s death. The company had defaulted on loans of ₹14.74 crore, with total dues exceeding ₹65 crore by May 2025.
Jagdishan Denies Charges, Alleges Retaliation
In his high court plea, Jagdishan has denied the allegations, calling the FIR “motivated” and “retaliatory,” noting it was registered soon after the bank resumed recovery actions against the Mehta-linked company. He claimed the case is based solely on unauthenticated “Xerox copies of selective cash records” and that no independent witnesses or corroborating evidence have been presented. He has also challenged the authenticity of the purported diary documenting the alleged bribes.
Delay in High Court Due to Judicial Recusals
Efforts to have the case heard in the Bombay High Court have been repeatedly stymied due to at least five judicial recusals. The High Court on June 30 declined to fast-track the matter, scheduling it for a regular hearing on July 14.
Meanwhile, a second FIR has also been filed against Chetan Mehta and others on allegations of ₹2.25 crore embezzlement from the Trust’s funds.
With the Supreme Court declining to intervene, all eyes will now be on the Bombay High Court hearing scheduled for next week, which could determine the course of action in one of Mumbai’s most high-profile hospital governance disputes.
