Did Lilavati Trust Expose a Hidden Appointment by HDFC Bank CEO?

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Did Lilavati Trust Expose a Hidden Appointment by HDFC Bank CEO?

Synopsis

The Lilavati Kirtilal Mehta Medical Trust has unearthed a secret appointment letter revealing that HDFC Bank's CEO was appointed as a Financial Advisor without trustee consent. This raises serious ethical and regulatory concerns as the Trust vows to pursue transparency and justice against unlawful practices.

Key Takeaways

  • Lilavati Trust claims undisclosed appointment of HDFC Bank CEO.
  • Serious ethical and regulatory concerns arise.
  • Trust vows to pursue transparency and justice.
  • Legal implications include investigations into financial irregularities.
  • Case set to be heard in Bombay High Court.

New Delhi, July 10 (NationPress) The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has unveiled a previously hidden appointment letter dated February 2, 2022, indicating that Shashidhar Jagdishan, CEO of HDFC Bank, was appointed as Financial Advisor to the Trust without the awareness, consent, or approval of its Permanent Trustees Kishor Mehta and Charu Kishor Mehta.

The LKMM Trust stated, “To our knowledge, this clandestine appointment was unknown to the board of HDFC, SEBI, the RBI Governor, or the Ministry of Finance.”

The press release alleges that this covert appointment was facilitated by Chetan Mehta in collusion with Rekha Seth and other purported trustees, seemingly a deliberate and unlawful scheme to secure external influence and control over the Trust’s financial decisions while maintaining an illegal board. There was no formal disclosure of the appointment during any board meetings, nor was it presented for the approval of the founding trustees.

Prashant Mehta, a Permanent Trustee of LKMM Trust, expressed, “Chetan Mehta executed this appointment in secrecy, without any communication or consent from the permanent trustees - Mr. Kishor Mehta and Mrs. Charu Mehta.”

The statement further raises alarm over the implications of involving the active Managing Director and CEO of a significant private sector bank, presenting serious regulatory and ethical concerns. The appointment fails to meet the transparency and fiduciary standards expected within the banking industry.

As of now, HDFC Bank has not responded to the latest allegations posed by the LKMM Trust.

Meanwhile, a fourth judge from the Bombay High Court recused himself from hearing the plea by Sashidhar Jagdishan against an FIR of cheating and fraud based on a complaint from the LKMM Trust, which operates the Lilavati Hospital in Mumbai.

The LKMM Trust previously alleged that Jagdishan accepted kickbacks amounting to Rs 2.05 crore for providing financial advice to help the hospital’s former trustees, including Chetan Mehta, maintain illegal control over the trust. Jagdishan has sought to quash the FIR, labeling it as baseless and malicious.

When the case was presented before a division bench of Justices Ravindra Ghuge and Gautam Ankhad, Justice Ankhad recused himself without elaboration. Following no objections from either party, it was agreed that the matter would be referred to another bench that does not include Justice Ankhad.

The Supreme Court, on July 4, declined to entertain Jagdishan’s plea to quash the FIR related to the LKMM Trust case, noting that the Bombay High Court was set to hear the plea on July 14.

A panel of Justices PS Narasimha and R Mahadevan expressed hope that the case would be addressed on July 14, asserting that it was inappropriate for the Supreme Court to intervene while the matter was pending before the Bombay High Court.

The allegations align with various ongoing concerns, including unauthorized treatment for family members, the illicit deposit of Rs 48 crore, and the aforementioned bribe of Rs 2.05 crore, which is currently under investigation. These overlapping issues strengthen the Trust’s legal argument that the appointment was not coincidental but part of a deliberate and unlawful strategy to maintain control by Chetan Mehta and his illegal board.

The LKMM Trust emphasizes its commitment to transparency, justice, and the values on which it was founded. The Trust continues to pursue legal avenues to expose all parties involved in this exploitation and protect the mission of the hospital.

Point of View

It's imperative to approach this situation with a commitment to factual reporting. The revelations by the Lilavati Trust highlight significant concerns regarding governance and transparency in financial institutions. Upholding the values of accountability and integrity is essential for maintaining public trust in such organizations.
NationPress
30/08/2025

Frequently Asked Questions

What is the main allegation against HDFC Bank's CEO?
The main allegation is that Shashidhar Jagdishan was appointed as a Financial Advisor to the Lilavati Trust without the knowledge or consent of its Permanent Trustees.
Who is involved in the alleged covert appointment?
Chetan Mehta, Rekha Seth, and other purported trustees are alleged to be involved in orchestrating the covert appointment.
What are the financial implications of this appointment?
The allegations include accepting kickbacks worth Rs 2.05 crore for financial advice, raising serious ethical and regulatory concerns.
How has HDFC Bank responded to these allegations?
As of now, HDFC Bank has not made any public statements addressing the latest allegations from the LKMM Trust.
What are the next steps in this legal matter?
The case is scheduled to be heard by the Bombay High Court on July 14, where further developments are anticipated.