In the latest development in India’s first class action lawsuit against a listed company, the principal bench of the National Company Law Tribunal (NCLT) on Thursday allowed substitution of Monet Securities in place of Ankit Jain and others in the proceedings against Jindal Poly Films. However, this does not mean the Tribunal has appointed Monet Securities as the lead petitioner. Under Section 245 proceedings, the lead applicant is to be selected by the members of the class, failing which the NCLT may appoint one.
Jain, who alleged over ₹2,500-crore financial fraud by the company, had sold his shares to Monet in April.
Substitution of Lead Petitioner
The minority group had filed 48 intervention petitions against the company, of which 27 shareholders have sold their entire stake.
The counsel appearing for Jindal Poly questioned the locus of the remaining intervenors to make submissions.
Counsel Abhinav Vasisht, who is representing the minority group, said these shareholders are entitled to be heard as they form a part of the class, unless they expressly opt out of such proceedings. Vasisht also said various measures were allegedly being adopted to acquire public shareholders’ stakes “with a view to discouraging opposition from minority shareholders”.
Jindal Poly has now been directed to file an affidavit setting out the details of the shareholders who have sold their stakes. The tribunal will hear further proceedings and connected applications on May 21.
Regulatory Scrutiny
The bench also granted time for the Securities and Exchange Board of India (Sebi) to file a rejoinder to the reply filed by Jindal Poly for the regulator’s intervention petition. Sebi had filed the intervention application to bring on record its findings of the financial mismanagement and securities law violations by the company.
“We wish to reiterate that all business decisions were taken under commercial wisdom with necessary approvals as required under applicable laws,” Jindal Poly’s spokesperson said.
On Thursday, shares of Jindal Poly closed almost 1% lower at ₹725 on the National Stock Exchange. The stock has risen almost 51% so far in 2026 and 12% from the year-ago period.