HDFC Bank Gets Clean Chit as Independent Legal Review Finds No Basis for Ex-Director's Resignation Claims

On Monday, Indian benchmark indices traded lower, with the Nifty 50 declining 30.95 points, or 0.13 per cent, to 24,025.05. Amid the weak market sentiment, Bank-ltd-100180">HDFC Bank share price traded at Rs 800.50, up 0.53 per cent, after the bank announced the conclusion of an independent legal review into statements made by former Independent Director Atanu Chakraborty in his resignation letter.

HDFC Bank Concludes Independent Legal Review

HDFC Bank informed the stock exchanges that the independent legal review, first announced on March 24, 2026, has now been completed. The review examined whether the concerns referred to by former Independent Director Atanu Chakraborty in his resignation letter were supported by evidence, whether he had recorded any dissent during his tenure, and whether any such concerns were addressed by the Board.

The review was conducted jointly by Wilson Sonsini Goodrich & Rosati and Wadia Ghandy & Co., which were appointed as external law firms to independently examine the matter. Over a period of approximately three months, the firms reviewed thousands of documents, Board and committee meeting records, agenda papers and other relevant materials while also conducting Interviews with Independent Directors, committee chairpersons, the Managing Director & CEO and members of the senior management team.

Review Finds No Evidence Supporting the Statement

According to the report submitted by the external law firms, the evidence reviewed did not substantiate the statements or implications contained in Mr Chakraborty's resignation letter.

The review found that meeting minutes underwent a comprehensive drafting, review and approval process, providing opportunities for directors to record any dissent or concerns. It also stated that there was no contemporaneous evidence in Board or committee records, meeting materials or related communications supporting the issues raised in the resignation letter. Interviews conducted during the review likewise did not substantiate the allegations.
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No Evidence of Dissent on Dubai Matter

The external law firms also examined references made by Mr Chakraborty regarding the Dubai matter in his post-resignation public statements. According to the report, no contemporaneous evidence was found indicating that he had raised concerns relating to his personal values and ethics or disagreed with decisions taken by the Board or its committees regarding the Dubai matter or any other issue during the review period.

The report concluded that the contemporaneous evidence reviewed was inconsistent with the statements made in the resignation letter and that the legal review did not identify any basis supporting those statements. The bank also noted that despite repeated requests, Mr. Chakraborty did not participate in an interview as part of the review process.

About HDFC Bank

HDFC Bank Ltd is India's largest private sector bank by market capitalisation. The bank offers a wide range of banking and financial services, including retail banking, wholesale banking, treasury operations, digital banking and wealth management, serving millions of customers across India and overseas.

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Disclaimer: The article is for informational purposes only and not investment advice.