Two new shareholders have intervened in the ongoing class-action suit against Jindal Poly Films Ltd. for alleged mismanagement. The NCLT has now fixed the next hearing for Sept. 5.
Seetha Kumari, holding approximately 4.95% of the company’s shares, and Dinesh Jain, representing his Hindu Undivided Family with a 0.01% stake, have joined the existing petitioners through an intervention application.
With the addition of these intervenors, nearly 10% of Jindal Poly Films' shareholders are now involved in the proceedings before the NCLT. The Jain group, led by Ankit Jain, initially held 4.99% of the company’s shares and had filed the original class-action lawsuit.
These shareholders are asking for compensation of around Rs 2,800 crore. They allege financial mismanagement and undervalued asset sales by Jindal Poly, actions they claim have caused substantial harm to both the company and its shareholders.
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The petition, seen by NDTV Profit, mentioned that in financial year 2013, Jindal Poly separated its investment division into a new entity, Jindal Poly Investment and Finance Co., which held significant equity in Jindal Powertech. Despite the separation, Jindal Poly continued investing in Jindal Powertech, which ultimately led to financial losses and a subsequent write-off of investments due to Jindal Powertech's poor performance.
The shareholders argue that Jindal Poly’s sale of investments in Jindal Powertech and Jindal Thermal, the holding company of Jindal Powertech, was conducted at prices far below their actual value, leading to substantial losses to the shareholders.
Repeated attempts by shareholders to seek clarification from the company have allegedly gone unanswered.
Jindal Poly Films And Shareholders’ Battle Continues At NCLT. Read more on Law & Policy by NDTV Profit.