The legal battle between the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust), which owns and operates Lilavati Hospital in Mumbai, and HDFC Bank, particularly its Managing Director and CEO Sashidhar Jagdishan, has escalated dramatically in recent weeks. The dispute involves allegations of unpaid loans, bribery, and a series of legal actions, with both sides vehemently denying any wrongdoing. Here's a timeline of the key events:

1995: Loan Origination HDFC Bank, along with other banks, extended loan facilities to Splendour Gems Ltd, a company owned by the Mehta family. The Lilavati Trust was founded by Kishor Mehta, son of Kirtilal Manilal Mehta & Lilavati Mehta.

2001: Loan Default Splendour Gems Ltd. was declared a defaulter. HDFC Bank initiated efforts to recover the outstanding loan amount.

2004: Recovery Certificate HDFC Bank received a recovery certificate from the Debt Recovery Tribunal. However, the dues remained unpaid despite subsequent enforcement actions.

June 8, 2025: Bribery Allegations Emerge The Lilavati Kirtilal Mehta Medical Trust (LKMMT) accused HDFC Bank CEO Sashidhar Jagdishan and eight others of financial fraud and misappropriation of the Trust's funds. The Trust sought the suspension and prosecution of Jagdishan. Specifically, the Trust alleged that Jagdishan accepted a ₹2.05 crore bribe to help the Chetan Mehta group retain illegal control over the Trust's operations. They claimed this payment was for "financial advice in looting the Trust" and facilitating the Chetan Mehta group's control.

June 9, 2025: HDFC Bank Denies Allegations HDFC Bank issued a statement rejecting the allegations as baseless and malicious. The bank stated that it and its CEO have not engaged in any illegal, unethical, or improper activity and affirmed compliance with all laws and high standards of governance and ethics. HDFC Bank suggested the allegations were a deliberate attempt to obstruct legitimate recovery proceedings related to the long-outstanding dues owed by Splendour Gems Limited. The Trust, however, maintains it has no connection to the borrower company and has never been a borrower of HDFC Bank.

June 9, 2025: Fresh Allegations and FIR The Lilavati Trust issued a fresh set of allegations, calling them a "summary of misdeeds" by Jagdishan, ranging from bribe money to forging evidence. The Mehta family filed a First Information Report (FIR) against Jagdishan following the financial fraud allegations.

June 10, 2025: Trust Rejects Outstanding Dues Claim The Lilavati Trust hit back at HDFC Bank, denying any outstanding dues and distancing itself from the loan default case involving Splendour Gems Ltd. The Trust reiterated its bribery accusations against Jagdishan.

June 11, 2025: HDFC Bank's Legal Action HDFC Bank, in a regulatory filing, stated it reserves all rights to pursue appropriate legal remedies, including recovery, enforcement, and defamation proceedings against the involved parties.

June 18, 2025: Jagdishan Seeks to Quash FIR HDFC Bank Managing Director and CEO Sashidhar Jagdishan moved the Bombay High Court seeking the quashing of the FIR lodged against him by the Lilavati Kirtilal Mehta Medical Trust. Jagdishan termed the complaint false and motivated, arguing the FIR was an abuse of the legal process intended to malign his reputation. A division bench recused itself from hearing the plea, leaving the matter pending further allocation.

June 19, 2025: More Allegations and Recusal The Trust alleged Jagdishan offered ₹1.5 crore under the guise of corporate social responsibility (CSR) funds to destroy and forge evidence in an internal Trust dispute. They also claimed the bank failed to act despite judicial findings and multiple complaints, violating the Companies Act and SEBI governance mandates. Another Division Bench judge also recused from hearing the matter.

June 20, 2025: Defamation Suit The Lilavati Kirtilal Mehta Medical Trust filed a ₹1,000 crore civil defamation lawsuit against HDFC Bank MD and CEO Sashidhar Jagdishan, accusing him of making malicious, false, and defamatory statements.

June 26, 2025: CBI Investigation Sought The Trust also filed a plea in the High Court seeking a transfer of the probe against the bank and Jagdishan to the Central Bureau of Investigation (CBI).

Throughout this escalating dispute, HDFC Bank has maintained that the actions by the Mehta family are a deliberate attempt to undermine legitimate recovery proceedings. The Lilavati Trust insists that Jagdishan is guilty of serious financial fraud and corruption. The courts will ultimately decide the veracity of these competing claims.