India's first class action lawsuit against Jindal Poly Films Ltd has hit a procedural snag, with the original petitioner exiting the company even as regulatory scrutiny intensifies.
The class action, admitted earlier this year by the National Company Law Tribunal (NCLT), was filed by erstwhile shareholders Ankit Jain and family, who alleged losses of nearly Rs 2,500 crore arising from undervalued asset sales, loan write‑offs and fund misappropriation at the company. The petition coincides with a separate SEBI investigation, which has flagged alleged violations of securities laws related to transactions undertaken between FY14 and FY24.
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During recent NCLT proceedings, it emerged that Ankit Jain and family are no longer shareholders. Following this, Monet Securities, which acquired around 5% stake in Jindal Poly for approximately Rs 135 crore on March 20, has sought to be substituted as the main petitioner. Other public shareholders are also expected to join the proceedings.
Jindal Poly Films has objected to the substitution, arguing that a new shareholder cannot step into the shoes of the original petitioner in a class action already admitted by the tribunal. The company has sought dismissal of the substitution plea.
The NCLT has taken the submissions on record and is scheduled to hear arguments on the substitution issue in two weeks. The outcome could determine whether the class action continues in its current form, even as SEBI presses ahead with regulatory action linked to alleged governance and disclosure lapses.
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