Daijiworld Media Network - Mumbai

Mumbai, May 6: The Bombay High Court on Tuesday set aside an FIR filed against Sashidhar Jagdishan in connection with a complaint by the Lilavati Kirtilal Mehta Medical Trust, terming the case a fallout of internal disputes and recovery actions.

The court also granted similar relief to three others, including officials linked to Phoenix ARC Pvt Ltd, and rejected the trust’s plea seeking transfer of the investigation to the Central Bureau of Investigation.

In its observations, the High Court pointed to deep-rooted tensions between former and current trustees of the trust, noting that recovery proceedings had already been initiated before the new management took charge. It also highlighted that dues amounting to around ?65 crore remain unpaid.

Calling the complaint a “counterblast” to ongoing recovery efforts, the bench warned that allowing such prosecutions could discourage legitimate financial recovery actions. The judges further remarked that the proceedings appeared driven by personal vendetta rather than genuine legal grievance.

The division bench of Justices M.S. Karnik and N.R. Borkar noted that the strained relationships within the trust had spilled over, affecting external parties like Jagdishan. At this preliminary stage, the court concluded that the complaint lacked bona fide intent with respect to the petitioners, though it refrained from commenting on allegations against other accused, including former trustees.

Senior advocate Amit Desai, representing Jagdishan, argued that the criminal case was a misuse of legal process aimed at harassment and reputational damage. On the other hand, counsel for trustee Prashant Mehta, along with the trust’s legal team and the prosecution, maintained that the complaint disclosed serious offences and warranted investigation.

Following the verdict, Mehta said the decision would be challenged before the Supreme Court of India, expressing confidence that justice would ultimately be served.

The FIR had been registered in May 2025 on the directions of a Bandra magistrate. The High Court, however, found the order to initiate criminal proceedings to be “mechanical,” and ruled that continuing the probe under such circumstances would not be justified.