US law firm files suit against HDFC

Washington: A law firm in the United States has filed a class-action suit against HDFC Bank, claiming damages for the losses incurred by investors because of ‘materially false and misleading’ representations made by India’s largest private sector lender.

The suit by Rosen Legal specifically names the bank’s managing director and chief executive Aditya Puri, his chosen successor Sashidhar Jagdishan and company secretary Santosh Haldnakar, who are the defendants in the suit, as per a copy of the complaint uploaded on the website.

According to the suit, bank officials “engaged in a plan, scheme, conspiracy and course of conduct, pursuant to which they knowingly or recklessly engaged in acts, transactions, practices and courses of business which operated as a fraud and deceit”, resulting in the losses to investors.

The allegations pertain to the vehicle finance vertical, where the bank later acknowledged having found some improprieties which resulted in some executives being acted against.