India's first class action lawsuit, targeting Jindal Poly Films for alleged siphoning of ₹2,500 crore through improper transactions, has encountered a setback as lead minority shareholder Ankit Jain has divested his shares and withdrawn from the case. Jain, who held a 4.99% stake, informed the National Company Law Tribunal (NCLT) that he no longer has legal standing to continue as a petitioner. This case, filed in March 2024, is significant as it utilizes Section 245 of the Companies Act, 2013, allowing minority shareholders to collectively seek legal redress for corporate misconduct. The NCLT is now assessing whether a new shareholder can step in to replace Jain, with the next hearing scheduled for 30 April. The lawsuit alleges that Jindal Poly Films engaged in fraudulent activities, including the sale of investments at undervalued prices, resulting in substantial losses for public shareholders. The outcome of this case could establish a crucial precedent for shareholder activism in India, a market where class action suits have been infrequent compared to other jurisdictions like the United States. Jindal Poly Films has contested the validity of the class action, asserting that the issues raised should be addressed through other legal avenues.