Jindal Poly Films Faces Legal Heat Over Alleged Rs 2,500 Crore Fraud

The National Company Law Appellate Tribunal (NCLAT) upheld the National Company Law Tribunal's (NCLT) order, accepting a class action petition against Jindal Poly Films. Shareholders allege a Rs 2,500 crore fraud via undervalued sales and transactions. The tribunal found the shareholder's petition aligns with Section 245 of the Companies Act.

The National Company Law Appellate Tribunal (NCLAT) has upheld a decision by the National Company Law Tribunal (NCLT) to admit a class action petition against Jindal Poly Films. This decision marks a significant legal hurdle for the company as it faces allegations of siphoning over Rs 2,500 crore through fraudulent means.

The petition, spearheaded by minority shareholders, claims that fraudulent asset sales and related-party transactions linked to promoters caused severe financial losses. While Jindal Poly Films attempted to challenge the NCLT's decision, the NCLAT found the claims worthy of consideration under Section 245 of the Companies Act.

The shareholder action, which includes notable allegations from petitioners Ankit Jain, Rina Jain, and Ruchi Jain Hanasoge, has led to a noticeable decline in the company's share value. The case underscores the potential repercussions of corporate mismanagement and fraudulent conduct on public investor trust.