India’s first class action lawsuit saw a turn of events as the lead petitioner, Ankit Jain, sold his stake in Jindal Poly Films and thus, no longer has the legal standing to be a part of the minority shareholders. Meanwhile, another party bought the stake and approached the National Company Law Tribunal (NCLT), seeking to substitute its name in the petition in place of Jain.
The Tribunal was also informed that another minority public shareholder has filed an application to intervene in the class action. The NCLT will hear the lawsuit and related applications on April 30.
Legal Maneuvering
The matter pertains to the alleged ₹2,500-crore financial fraud by the company, which was raised by minority investors holding almost 5% stake. The group of investors, led by Jain, claimed that the company and its promoters transferred funds and assets at significant undervaluation, unfairly wrote off loans, and made consultancy payments to unqualified entities.
SEBI’s Intervention
The New Delhi bench of the law tribunal issued a notice in the intervention application filed by the markets regulator, calling for response from Jindal Poly and other respondents. By way of the application, the Securities and Exchange Board of India (Sebi) seeks to bring on record its findings into the financial mismanagement and securities law violations by the company.
Last year, Sebi had collected evidence about the investment write-offs made by Jindal Poly and general financial mismanagement which violated the rights of minority shareholders and the securities market at large under various provisions. The regulator’s investigation focuses on the company’s engagement through Jindal India Powertech in the power sector though the company had disclosed its exit from related businesses over a decade ago.
In February, the NCLT had admitted the class action lawsuit, a first of its kind admitted by an Indian Tribunal. The National Company Law Appellate Tribunal (NCLAT) had also dismissed Jindal Poly’s plea against the class action lawsuit, paving the way for NCLT to hear the matter on merits basis.
On Thursday, shares of Jindal Poly closed 3.6% lower at ₹813.35 on the BSE. The stock rose almost 70% so far in 2026. Jindal Poly is a part of the BC Jindal group and is engaged in the business of various packaging films and non-woven fabrics.