The Mumbai Police Monday informed the Bombay High Court that the investigation in the FIR against HDFC Bank Managing Director and CEO Sashidhar Jagdishan based on a complaint by Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has been transferred to EOW.
The HC was further informed that the probe by the Economic Offences Wing (EOW) was at a preliminary stage.
The police also orally assured the HC that no summons will be issued to Jagdishan until the next hearing.
The magistrate court in Bandra on May 29 had directed the Bandra police to register offences punishable under sections 406, 409 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code (IPC).
The magistrate had ordered the probe on the basis of a complaint by trustee Prashant Mehta. Two days later, the Bandra police registered the FIR against Jagdishan and six others who were erstwhile trustees.
According to the complaint, after assuming office, Prashant Mehta found a diary showing that between March and June 2022, sums adding up to Rs 2.05 crore were transferred to Jagdishan on the directions of Chetan Mehta, who was a trustee at the time.
A division bench of Justices Makarand S Karnik and Nitin R Borkar was hearing a writ plea by Jagdishan seeking quashing of the FIR and setting aside of the May 29 magistrate court’s order.
Pending hearing of the plea, Jagdishan has sought a stay on the probe against him and urged that there should not be any coercive action, including the filing of chargesheet, against him.
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Earlier, four judges of the HC had recused themselves from hearing the matter citing various reasons including possession of HDFC Bank shares and prior association with Lilavati Trust or lawyer appearing in the matter among others.
Thereafter, the plea was listed before the bench led by Justice Karnik on Monday.
Senior advocate Amit Desai for Jagdishan argued that the FIR was a “retaliatory” move due to recovery proceedings initiated against Splendour Gems Limited (formerly known as Beautiful Diamonds Limited), a company owned by the complainant’s father.
He added that the same was done using “facade” of the Trust to seek action against the petitioner and done with “malafide”.
After Desai argued the matter, on the issue of admission and interim relief, the HC sought to know from the government lawyer as to what was the status of the probe.
The lawyer argued that the investigation was underway after it being transferred to EOW and same was at a preliminary stage.
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The lawyer further informed the HC that till now no summons had been issued to Jagdishan and will require some time to apprise court of further course of action.
After the HC decided to post the matter for further hearing on July 23, the state lawyer orally assured that no summons will be issued to the petitioner till then.