Bribery FIR against HDFC bank CEO: Fourth Bombay HC Judge recuses over conflict of interest

In yet another setback to the ongoing legal proceedings, a fourth Bombay High Court judge on June 26 recused himself from hearing HDFC Bank CEO and Managing Director Sashidhar Jagdishan’s petition challenging a bribery FIR filed against him by the Lilavati Kirtilal Mehta Medical Trust — which manages Mumbai’s prominent Lilavati Hospital.

A division bench of Justices Mahesh S Sonak and Jitendra S Jain was scheduled to hear the matter when Justice Jain cited a potential conflict of interest, revealing that he holds shares in HDFC Bank and has a past association with the Lilavati Trust. While the petitioner raised no objection to the bench, the complainant's counsel opposed Justice Jain’s involvement, prompting the bench to officially withdraw from the case.

“The matter may not be placed before a bench of which Justice Jain is a party,” the court stated, acknowledging the concerns raised by complainant Prashant Mehta’s legal team.

The FIR at the heart of the case alleges that Jagdishan accepted a bribe of ₹2.05 crore to help a group of former trustees, including Chetan Mehta, maintain alleged illegal control over the Trust. The complaint, filed by Trustee Prashant Mehta, led a Bandra magistrate to direct the local police on May 29 to investigate charges under IPC sections 406, 409 (criminal breach of trust) and 420 (cheating).

The Bandra police registered the FIR two days later, naming Jagdishan and six others, all former trustees.

Jagdishan, in his plea, dismissed the complaint as a "retaliatory" tactic, claiming it stemmed from recovery proceedings initiated against Splendour Gems Ltd, a company owned by Mehta’s father. The Trust, he argued, was being used as a "facade" to settle personal scores.

This is the fourth recusal in the high-profile matter. Justice Rajesh Patil previously stepped aside on June 18, followed by Justice Sarang Kotwal, who cited his earlier representation of one of the trustees. The case was then reassigned to Justices Sonak and Jain.

Justice Jain also stepped away from related pleas filed by Keki Elavia, Venkatu Srinivasan, and Kotak Mahindra-backed Phoenix ARC, all challenging another FIR involving alleged embezzlement of ₹2.25 crore in Trust funds.

The Bombay High Court is expected to reassign a new bench to hear Jagdishan’s plea and those of other accused parties in due course.