NCLT defers Jindal Poly Films case over fraud allegations in class action suit
₹2,500 crore, allegedly due to actions of its promoters and directors. The lawsuit targets members of the Jindal Polyfilms promoter family — Shyam Sunder Jindal, Subhadra Jindal, and Bhavesh Jindal —as well as certain company directors and officials. Directors named in the lawsuit include Sonal Agarwal, Sanjeev Aggarwal, Rathi Binod Pal, Sanjeev Saxena, Devinder Kumar Rithaliya, and Vijender Kumar Singhal.
Additionally, the company’s current chief executive officer Vinod Kumar Gupta and past non-executive director Punit Gupta are also named in the suit. The tribunal adjourned the case after hearing arguments from both minority shareholders and the company. The company court will take up this case on 9 May.
Under the Companies Act, 2013 of India, section 245 allows a group of individuals to collectively file a lawsuit against a company. This can be initiated by either 100 members or 1/10th of the total members of the company, whichever is less. The lawsuit must be filed in the NCLT specifying grounds for the action and relief sought.
During Tuesday's hearing, minority shareholders argued against the unjustifiable exploitation of shareholder funds through optionally convertible preference shares (OCPS) and redeemable preference shares (RPS) investments. They alleged that Jindal Poly Films Ltd. (JPFL) made substantial investments totalling ₹703.79 crore in Jindal India Powertech Ltd.
(Jindal Powertech) between FY 2013-2014 and FY 2016-17, despite Jindal Powertech suffering continuous cash losses and significant erosion in net worth. The petitioners further claimed that in FY 2018-19, instead of recovering the investments from Jindal Powertech, JPFL chose to write them off. Subsequently, in FY 2021-22, JPFL sold the
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