In a filing with the Bombay Stock Exchange (BSE), HDFC Bank Limited has strongly condemned what it describes as a frivolous and malicious First Information Report (FIR) filed against its Managing Director & CEO and other senior officials. The Bank stated that it is being targeted by unscrupulous individuals who are misusing legal channels in an attempt to derail the recovery of a long-outstanding loan from Splendour Gems Limited (formerly Beautiful Diamonds Limited), a company owned by the Mehta family.
According to the BSE filing, Splendour Gems Limited defaulted on credit facilities granted by HDFC Bank and a consortium of banks back in 1995. As of May 31, 2025, the outstanding dues owed to HDFC Bank, including accrued interest, amount to approximately ?65.22 crore. Despite a recovery certificate issued by the Hon’ble Debts Recovery Tribunal in 2004 and multiple enforcement actions, the dues remain unpaid. The company also holds borrowings from other banks and financial institutions.
In response to the bank’s ongoing recovery efforts, the Mehta family has initiated a series of legal complaints against HDFC Bank and its executives. These include criminal cases, petitions citing minority shareholder rights, and representations before various regulatory authorities—many of which have already been dismissed or are currently under legal scrutiny. HDFC Bank maintains that these actions are retaliatory and aimed solely at evading the repayment of dues.
Most recently, the Mehta family, through the Lilavati Kirtilal Medical Trust, has filed yet another complaint against HDFC Bank, its MD & CEO, and other senior officials. The Bank has categorically rejected these allegations, calling them baseless, outrageous, and a gross misuse of the legal process. It believes this is a deliberate attempt to obstruct legitimate recovery proceedings and damage the reputation of the Bank and its leadership.
The Bank emphasized that after exhausting all legal avenues without success, the defaulters have resorted to personal attacks intended to intimidate and malign the institution and its executives. HDFC Bank reiterated its commitment to ethical conduct, transparency, and high standards of corporate governance. The Bank further stated it will continue to pursue all lawful means to recover public funds and defend the integrity and reputation of its Directors and employees.