HDFC Bank Faces Class Action Over Alleged Fraud and Improper Payments

The litigation centers on allegations that HDFC and its leadership engaged in deceptive practices that impacted shareholder value. The scrutiny intensified after the March 18, 2026, resignation of part-time Chairman Atanu Chakraborty. In his departure notice, Chakraborty cited internal practices that conflicted with his personal values and ethics, triggering a 7.28% drop in the bank's American Depositary Shares that same day.

Further pressure mounted on May 27, 2026, following a report in The Indian Express. The publication alleged that HDFC funneled approximately $4.7 million to the Maharashtra State Road Development Corporation under the guise of sponsorship for a road safety campaign. Prosecutors and investigators suggest this was a mechanism to pay inflated interest rates—a 2.51% premium over standard accounts—to induce the state firm to maintain large deposits. Internal probes reportedly implicated over ten senior executives, including CEO Sashidhar Jagdishan, leading to another 4.11% decline in share price.

Pomerantz LLP is now spearheading the class action. Investors who acquired HDFC securities during the relevant period have until October 13, 2026, to petition the court for lead plaintiff status. Detailed information regarding the complaint and the process for joining the suit is available through the firm’s official channels.