The litigation centers on a period between July 17, 2023, and May 26, 2026, alleging that HDFC Bank secretly paid approximately Rs 45 crore—roughly $4.7 million—to the Maharashtra State Road Development Corporation. To circumvent Reserve Bank of India mandates, management reportedly masked these payments as road safety sponsorships, allowing the state firm to receive a 6.01% interest rate, significantly higher than standard retail offerings.

These practices allegedly inflated interest income and distorted financial reporting, while violating the bank's internal anti-corruption policies. The scheme began to unravel in March 2026 when part-time Chairman Atanu Chakraborty resigned, citing practices that were not in alignment with his professional ethics. His departure triggered a 7.28% drop in HDFC American Depositary Shares. Subsequent reports in May 2026 further implicated CEO Sashidhar Jagdishan and CFO Srinivasan Vaidyanathan in an internal vigilance probe, leading to an additional 4.1% decline in share value. Investors seeking to serve as lead plaintiff in the case have until October 13, 2026, to contact Hagens Berman.