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

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.