The Bombay High Court on Tuesday quashed a bribery case against HDFC Bank Managing Director and CEO Sashidhar Jagdishan, ruling the complaint filed by the Lilavati Kirtilal Mehta Medical Trust was not bona fide and amounted to a 'counterblast' to the bank's recovery proceedings over Rs 65.22 crore. A division bench of Justices M S Karnik and N R Borkar held that the materials on record did not justify an investigation and termed the continuation of the FIR an 'abuse of the process of court'.

The case arose from the bank's recovery efforts against Splendour Gems Ltd, a company linked to the Mehta family, for defaulting on loans. The Trust, which runs Lilavati Hospital in Bandra, alleged through representative Prashant Mehta that Jagdishan accepted Rs 2.05 crore in bribes from Chetan Mehta to influence control of the Trust, citing a diary found during recovery proceedings. Police filed an FIR on May 31, 2025, under sections 406, 409, and 420 of the IPC following a magistrate's order.

Jagdishan challenged the FIR, stating it was a consequence of the bank's enforcement actions and reflected internal strife among the Trust's trustees. The court noted 'serious acrimony, distrust and strained relations' between past and present trustees and observed that the bank could not be held responsible for the founder Kishore Mehta's death in 2024, as alleged by the complainant. The bench upheld Jagdishan's plea, setting aside the magistrate's May 2025 order directing a police probe.

The court emphasized that financial institutions have a duty to recover dues and that such recovery actions cannot be met with retaliatory complaints. It found no evidence supporting criminal misconduct by Jagdishan and concluded the complaint lacked credibility. The ruling effectively halts any further criminal proceedings arising from the FIR unless stayed or overturned on appeal.

The court's decision allows HDFC Bank to continue recovery proceedings before the Debt Recovery Tribunal, where substantial amounts remain outstanding. The next hearing in the recovery case is scheduled for July 2025.