HDFC Bank has firmly denied the recent allegations made by the Mehta family. The bank called the FIR filed against its leadership a strategic move to delay loan recovery.
This ongoing feud traces back to a long-standing loan default by the Mehta family’s company, Splendour Gems Limited.
Here’s the story in simple terms: In 1995, HDFC Bank and other lenders gave loans to Splendour Gems. But by 2001, the company stopped paying back.
Despite a recovery certificate issued by the Debt Recovery Tribunal in 2004 and several enforcement actions, the bank is still chasing nearly Rs 65.22 crore as of May 31, 2025.
So, what does this mean for everyday people? When big companies default and drag out legal battles, it hurts the overall trust in the banking system.
Banks like HDFC, which is India’s largest private sector lender, have to spend time and resources recovering money that should ideally flow smoothly back into the economy.
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The Mehta family, instead of clearing dues, has launched a series of legal attacks. These include criminal complaints, minority rights petitions, and complaints to regulators.
Most of these actions have either been dismissed or are still stuck in court. Now, they have even targeted HDFC Bank’s MD & CEO through the Lilavati Kirtilal Medical Trust.
HDFC Bank didn’t take this lightly. The bank called the allegations “malicious” and “baseless.” It said these false claims are a misuse of the legal system. The bank also stressed its commitment to top-level corporate governance.
If you think this sounds like a never-ending soap opera, you’re not far off. It’s like a high-stakes game of chess, where every legal move is calculated to stall the inevitable. HDFC Bank has promised to fight back legally to protect its reputation and recover the money owed.
As of March 2025, HDFC Bank operates 9,455 branches and 21,139 ATMs across more than 4,150 cities and towns. This extensive network shows just how big and important the bank is in India’s financial landscape. So, when the bank says it will protect its integrity, it means business.
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