HDFC Bank Faces Legal Battle in Loan Recovery Saga
HDFC Bank confronts legal challenges from the Mehta family over a longstanding loan default, amidst allegations and retaliatory claims. Despite recovery efforts, Rs 65.22 crore remains unpaid, leading to criminal complaints against HDFC's executives. The bank rejects the allegations and reaffirms its commitment to ethical governance.
- Country:
- India
In a prolonged financial dispute, HDFC Bank finds itself embroiled in legal challenges from the Mehta family concerning a defaulted loan dating back to 1995. The issue, which HDFC Bank disclosed to stock exchanges, revolves around unpaid dues amounting to approximately Rs 65.22 crore as of May 2025.
Despite a Debt Recovery Tribunal order in 2004 and continued enforcement attempts, the bank reports significant outstanding amounts from Splendour Gems Limited, owned by the Mehta family. In response, the Mehta family has filed various legal actions against HDFC Bank executives, alleging misconduct and minority rights violations, claims that HDFC described as retaliatory.
Strongly rejecting the accusations, HDFC Bank states these actions aim to distract from the Mehta family's financing responsibilities. The bank emphasized its commitment to ethical governance, asserting that it will pursue lawful remedies to recover dues and counter misleading claims affecting its directors and employees.
(With inputs from agencies.)
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