Lilavati Kirtilal Mehta Trust has moved the Bombay High Court with a Rs 1,000 crore defamation suit against HDFC Bank and its CEO Sashidhar Jagdishan, alleging that statements issued by the bank on dues and litigation are false and damaging to its reputation.
The Trust claims that HDFC Bank “falsely portrayed” it and trustee Prashant Mehta as loan defaulters, harming standing and credibility in the public domain.
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The suit seeks a gag order restraining the bank from making further statements, along with takedown of existing content and a public apology. However, the High Court has refused to grant interim relief, declining to impose any restraint on HDFC Bank or its officials at this stage.
Justice Somasekhar Sundaresan, while rejecting the plea, held that the bank’s statements cannot be prima facie treated as defamatory. The court found that the assertions made by HDFC Bank were supported by material on record, observing that “the Subject Statements are based on strong material” and constitute a bona fide clarification of its position.
Crucially, the court leaned on the existence of a Debt Recovery Tribunal recovery certificate to conclude that dues are legally attributable to the Mehta family. It held that “the issuance of a Recovery Certificate is an indication of monies being owed,” rejecting the Trust’s argument that liability had not been finally adjudicated.
The court also cited a pattern of extensive litigation initiated by the Mehta family across forums, noting prior judicial findings that recovery proceedings had been repeatedly delayed.
It accepted the bank’s contention that it was entitled to respond to media queries and defend itself, especially in the face of a public campaign.
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On balance, the court ruled that restraining the bank would cause greater harm and run contrary to principles of free speech. It dismissed the interim application and imposed costs of 5 lakh on the plaintiffs.
The dispute stems from longstanding recovery proceedings by HDFC Bank over loans linked to the Mehta family, dating back over two decades. The litigation has escalated in recent years into criminal complaints, regulatory representations, and public allegations.
In May 2026, the Bombay High Court quashed an FIR filed by the Trust against the HDFC Bank CEO, calling it an “abuse of the process of law” and holding that it arose out of recovery proceedings. Courts have also previously characterised similar complaints as attempts to stall recovery, describing them as a “counterblast” to enforcement action over dues of about Rs 65 crore.