HDFC Bank has strongly condemned what it described as a “frivolous” First Information Report (FIR) filed against its Managing Director and CEO by members of the Mehta family, who are long-standing defaulters of a substantial bank loan dating back to 1995.
In a statement issued to stock exchanges on Sunday evening, the private lender said that the complaint was filed through the Lilavati Kirtilal Medical Trust in an apparent bid to stall ongoing recovery efforts related to unpaid dues from Splendour Gems Limited, a company owned by the Mehta family.
According to the bank, Splendour Gems Limited defaulted on credit facilities provided by HDFC Bank and other consortium banks in 1995. A Debt Recovery Tribunal (DRT) had issued a recovery certificate in 2004, yet a significant portion of the debt remains unpaid. As of May 31, 2025, the amount owed to HDFC Bank, including accrued interest, stands at approximately ₹65.22 crore.
The bank revealed that, in response to its continued recovery actions, members of the Mehta family have filed multiple legal actions and complaints over the years, including criminal cases and petitions regarding minority rights. HDFC Bank noted that many of these have already been dismissed, while others remain under legal challenge.
“These allegations are retaliatory and driven by mala fide intentions aimed solely at evading repayment of long-standing dues,” the bank stated. It further asserted that the latest FIR was yet another attempt to disrupt legitimate recovery proceedings and malign the reputation of the bank and its leadership.
HDFC Bank reiterated that its internal governance and compliance mechanisms are robust and fully aligned with legal and regulatory requirements. “Our governance framework upholds transparency, accountability, and ethical conduct across all operations,” the bank said.
The lender also highlighted that its policies and practices are designed to maintain the highest standards of corporate governance and ethical behaviour.
HDFC Bank concluded by affirming that it will continue to pursue all lawful avenues to recover public funds and counter any retaliatory actions taken by the Mehta family. The bank also pledged to defend the reputation and integrity of its Directors, employees, and institution as a whole.