Home / Business and Economy / Minority Shareholders Sue Jindal Poly Films for Rs 2,500 Crore
Minority Shareholders Sue Jindal Poly Films for Rs 2,500 Crore
5 Feb
Summary
- Class action lawsuit admitted by NCLT against Jindal Poly Films.
- Minority shareholders claim Rs 2,500 crore damages for asset stripping.
- Lawsuit alleges undervalued sale of company investments to promoter's trust.
The National Company Law Tribunal (NCLT) has admitted a class action lawsuit against Jindal Poly Films, marking a significant development for minority shareholder rights in India. The lawsuit, filed by a group of minority shareholders led by Ankit Jain, claims damages totaling Rs 2,500 crore.
Shareholders allege that Jindal Poly Films engaged in transactions that stripped the company of valuable assets, resulting in substantial monetary losses for them. Specifically, the plea contends that certain company investments were sold at significantly undervalued prices to SSJ Trust, an entity associated with promoter Shyam Sunder Jindal.
The NCLT's principal bench on Thursday rejected Jindal Poly Films' objections to the maintainability of the lawsuit, clearing the way for arguments on the merits of the case. This ruling could set a precedent for future shareholder disputes in India, where class action lawsuits are relatively rare. The Securities and Exchange Board of India (SEBI) was reportedly investigating potential securities law violations by Jindal Poly Films.
