The litigation centers on a period between July 17, 2023, and May 26, 2026, alleging that HDFC Bank secretly paid approximately Rs 45 crore—roughly $4.7 million—to the Maharashtra State Road Development Corporation. To circumvent Reserve Bank of India mandates, management reportedly masked these payments as road safety sponsorships, allowing the state firm to receive a 6.01% interest rate, significantly higher than standard retail offerings.
HDFC Bank Faces Securities Fraud Lawsuit Over Hidden Payment Scheme
Conflict defines the new class action against HDFC Bank, as investors claim the institution funneled millions in disguised marketing payments to secure state deposits. The lawsuit, filed by Hagens Berman, targets senior leadership for allegedly bypassing regulatory interest-rate caps and misleading shareholders about the bank’s financial health and governance standards.
These practices allegedly inflated interest income and distorted financial reporting, while violating the bank's internal anti-corruption policies. The scheme began to unravel in March 2026 when part-time Chairman Atanu Chakraborty resigned, citing practices that were not in alignment with his professional ethics. His departure triggered a 7.28% drop in HDFC American Depositary Shares. Subsequent reports in May 2026 further implicated CEO Sashidhar Jagdishan and CFO Srinivasan Vaidyanathan in an internal vigilance probe, leading to an additional 4.1% decline in share value. Investors seeking to serve as lead plaintiff in the case have until October 13, 2026, to contact Hagens Berman.
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