The complaint centers on claims that HDFC Bank paid approximately $4.7 million to the Maharashtra State Road Development Corporation under the guise of sponsorship for road safety campaigns. This arrangement allegedly provided the state entity with a 2.51% interest rate premium compared to standard savings accounts. According to the filing, an internal investigation concluded that ten senior officials, including CEO Sashidhar Jagdishan, were responsible for these covert activities.

Market volatility followed two critical disclosures. On March 18, 2026, HDFC shares fell 7.28% after Chairman Atanu Chakraborty resigned, citing practices that contradicted his personal ethics. A second decline of 4.1% occurred on May 27, 2026, following a report in The Indian Express detailing the alleged payment scheme. The law firm Robbins LLP is now calling for investors who acquired HDFC securities during the class period to come forward. Potential lead plaintiffs have until October 13, 2026, to submit their applications to the court.