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A shareholder has sought the intervention of stock exchanges, alleging that Jindal Poly Films and its promoters caused a loss of about ₹700 crore through investments in preference shares of Jindal India Powertech.
“Please look into the affairs of the company and make timely intervention before more funds are siphoned with the collusion of employees and...investigate this matter,” Janak Mathuradas, a shareholder of the company, said in a letter the bourses. The letter was addressed to National Stock Exchange of India Chairman Ashok Chawla, BSE Chairman Sudhakar Rao, and N Bagade from the BSE’s Department of Investors Services.
“I am pained to inform you that Jindal Poly, along with its promoters, is out to cheat the public shareholders of their hard-earned money. The management of the company has been regularly committing blunders so as to personally benefit the promoter family of Jindal Poly,” added the letter, which was reviewed by BusinessLine .
Company responseWhen contacted, a company spokesperson said: “We are in receipt of your email and wish to inform that we have received a letter from the NSE along with the letter of Janak Mathuradas who has asked certain queries on the investment by Jindal Poly Films in Jindal India Powertech....we are already in process of replying to the said letter.”
Jindal Powertech, which is owned and controlled by the promoters of Jindal Poly, holds 85.81 per cent equity and the preference share capital of Jindal Thermal Power. The other shareholder is Harit Vanijya, LLP, which owns most of the remaining shareholding and also indirectly belongs to the promoter of Jindal Poly, the letter said.
The letter states that Jindal Powertech is the holding company of Jindal Thermal and shareholders of Jindal Poly will be the most affected as Jindal India Thermal has started defaulting on interest payment and principal repayment of these loans.
The letter also said that Jindal India Thermal, in which Jindal Powertech owns 86 per cent of the shares, has defaulted on loans of ₹5,000 crore.
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