FIR Filed Against HDFC Bank MD & CEO by Loan Defaulter: Full Timeline and Context

Background of the Case

An FIR has been filed against the Managing Director and CEO of HDFC Bank by members of the Mehta family, who were declared loan defaulters. The case pertains to a loan issued back in 1995 to Splendour Gems Limited, a company owned by the Mehta family. Despite the passage of over two decades, a substantial portion of the loan remains unpaid.

In an official statement released to the stock exchanges on June 8, 2025, HDFC Bank confirmed the development and asserted its commitment to continuing all lawful actions to recover the dues from the borrower.

Loan Default Timeline

HDFC Bank, in its disclosure, stated that Splendour Gems Limited had availed of financial facilities in 1995, under a consortium of banks. The account turned non-performing, and in 2001, the company defaulted on the loan repayment.

A Recovery Certificate was issued by the Debt Recovery Tribunal (DRT) in 2004, initiating formal enforcement actions. However, as of May 31, 2025, the dues owed by Splendour Gems Limited to HDFC Bank, including accrued interest, stood at approximately ₹65.22 crore.

Legal Offensive by the Mehta Family

HDFC Bank further revealed that the Mehta family has been launching multiple legal actions and complaints against the bank and its senior leadership over the years. These include:

• Criminal complaints

• Minority rights petitions

• Representations to regulatory authorities

According to the bank, all such actions have either been dismissed or are currently under legal challenge. The bank maintains that these complaints are retaliatory in nature and serve the purpose of evading repayment obligations.

Recent FIR Filed via Lilavati Kirtilal Medical Trust

The latest development involves the filing of a criminal complaint by the Lilavati Kirtilal Medical Trust, which is linked to the Mehta family. The FIR targets the MD and CEO of HDFC Bank personally, attempting to escalate the matter into a criminal offense rather than a commercial default.

HDFC Bank has firmly condemned this move, describing the allegations as malicious, baseless, and a gross misuse of legal procedures.

Bank’s Official Stand on Allegations

HDFC Bank has unequivocally rejected all accusations made by the Mehta family. In its formal response, the bank stated that these actions are a deliberate tactic to obstruct and undermine the legitimate loan recovery proceedings. It further claimed that the family is attempting to malign the bank's reputation and intimidate senior officials to derail recovery efforts.

HDFC Bank emphasized that these actions are a calculated distraction from the Mehta family’s own defaults and liabilities.

Commitment to Corporate Governance

Reiterating its principles, HDFC Bank highlighted its adherence to strong internal controls, compliance mechanisms, and a robust governance framework. It stated that the bank is built on pillars of transparency, accountability, and ethical conduct.

The bank added that it would not be deterred by retaliatory measures and would continue to pursue all lawful remedies to recover public funds and safeguard its reputation and that of its directors and employees.

Conclusion

The dispute between HDFC Bank and the Mehta family underscores the complexities of long-standing loan defaults and the increasing use of legal counters as a defensive tactic by defaulters. While the matter now involves criminal proceedings, the core issue remains a ₹65 crore unpaid loan that has lingered since 1995.

HDFC Bank has reiterated its resolve to pursue the matter to its legal conclusion and defend its institutional integrity.

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