Mumbai, June 8 – In a dramatic turn of events, an FIR has been filed against HDFC Bank’s MD and CEO by the Mehta family, who defaulted on a major loan nearly three decades ago. The bank confirmed the development through a disclosure to stock exchanges on Sunday evening and denounced the move as a malicious and retaliatory act aimed at derailing lawful recovery proceedings.
Background: A 30-Year-Old Loan Default
The matter dates back to 1995, when Splendour Gems Limited, a company owned by the Mehta family, availed loan facilities from HDFC Bank and other consortium lenders. The company defaulted in 2001, and despite a Debt Recovery Tribunal (DRT) certificate in 2004, the dues remain largely unpaid.
As of May 31, 2025, the Mehta family reportedly owes ₹65.22 crore, including interest, to HDFC Bank.
Repeated Legal Challenges by Mehta Family
HDFC Bank stated that the Mehtas have, over time, launched multiple legal complaints and proceedings—including criminal cases, petitions citing minority shareholder rights, and representations before regulatory authorities. However, most of these complaints have either been dismissed or are currently under legal challenge.
In the latest escalation, the Lilavati Kirtilal Medical Trust, associated with the Mehta family, has lodged a complaint targeting the bank’s top leadership.
HDFC Bank Responds: “Baseless Allegations”
In a strongly worded statement, HDFC Bank categorically rejected the allegations, describing them as:
“False, outrageous, and a gross misuse of the legal process.”
The bank alleged that the complaint is part of a “deliberate attempt to obstruct and undermine legitimate recovery efforts.” It further stated that the Mehtas, having failed in previous legal attempts, are now resorting to personal attacks and intimidation tactics.
Bank Reiterates Governance and Ethics
Emphasizing its adherence to ethical practices and strong corporate governance, HDFC Bank said:
“Our governance framework upholds transparency, accountability, and integrity. We remain committed to pursuing all lawful remedies to recover public funds and protect the reputation of our directors and employees.”
