Jindal Poly Films faces class action suit alleging fund mismanagement and Rs 2,000 crore losses

Jindal Poly Films faces class action suit alleging fund mismanagement and Rs 2,000 crore losses

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26 Aug, 2025 12:21

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Minority shareholders of Jindal Poly Films have filed a class action suit with the National Company Law Tribunal (NCLT) alleging the siphoning off of funds to promoters, resulting in a staggering loss of approximately Rs 2,000 crore to the company.

The Jindal Poly Films stock fell into negative territory after the news. It was trading at Rs 538, down 2.07% around 2 pm.

The NCLT has scheduled the next hearing on the case for May 9.

According to the complaint presented to the NCLT on Tuesday, April 9, between the fiscal years 2013 and 2017, Jindal Poly Films purportedly invested a sum of ₹700 crore into two associated entities, namely Jindal India Powertech Limited and Jindal India Thermal Power Ltd, through instruments such as Optionally Convertible Preference Shares (OCPS) and Redeemable Preference Shares (RPS).

Surprisingly, these investments were nearly simultaneously written off, raising serious concerns among investors, as per the complaint.

The related entities, Jindal Powertech and Jindal Thermal, subsequently defaulted on their debts, prompting negotiations with lenders for settlement. In a bid to resolve the matter with creditors, Jindal Polyfilms injected an additional ₹600 crore into the troubled entities, the complaint noted.

It was further revealed that Jindal Poly Films invested the ₹1,300 crore in tranches when the chips were down, and then allegedly sold its shares in the related entities to a promoter group trust for a mere ₹106 crore when the fortunes of the power sector began to improve.

This move, viewed as detrimental to the interests of minority shareholders, has been cited as a major factor contributing to the estimated ₹2,000 crore loss incurred by Jindal Poly Films.

The minority shareholders have accused the promoters of actions prejudicial to the interests of public shareholders, resulting in significant financial damage to the company.