HDFC Bank Law Firm Review Finds No Evidence to Support Ex-Chairman's Allegations

HDFC Bank has announced that external law firms appointed to review allegations made by its former Chairman Atanu Chakraborty have found no evidence to support his claims. The law firms—Wilson Sonsini Goodrich & Rosati, PC and Wadia Ghandy & Co—conducted a thorough three-month review, examining thousands of documents and interviewing independent directors and senior management members.

In a stock exchange filing, the bank stated that the law firms concluded that Chakraborty's statement and its implications were 'not substantiated' by the evidence reviewed. The contemporaneous documents and witness interviews were inconsistent with his claims. Notably, Chakraborty did not participate in the review despite repeated requests from the bank and the law firms.

Chakraborty resigned as part-time chairman and independent director on March 18, citing that 'certain happenings and practices within the bank are not in congruence with my personal values and ethics.' Six days later, the bank's board appointed the law firms to investigate his allegations.

The law firms reported that the minutes of board meetings Chakraborty attended were subject to a comprehensive drafting and approval process, which allowed him to raise any concerns. However, no contemporaneous support for his statement was found in those minutes or in any communications. Witness interviews also did not substantiate his claims.

Chakraborty had referred to a 'Dubai matter' in post-resignation public statements, but the review found no evidence that he raised any ethical concerns or disagreed with board decisions related to that matter or any other issues.

The bank said the law firms submitted their report to the board after completing the review.