The National Company Law Tribunal (NCLT) invalidated a series of transactions involving JLS Realty Pvt Ltd, including the transfer of a prime redevelopment land parcel in Mumbai to Spenta Suncity and a mortgage and corporate guarantee linked to ₹525 crore in financing involving IIFL.
In an order pronounced on October 23, the Mumbai bench of the tribunal also invalidated the appointment of two IIFL-linked employees as directors, declared the attempted removal of an existing director illegal, reversed disputed share transfers and ordered restoration of the company's land.
The Bench, comprising Judicial Member K R Saji Kumar and Technical Member Anil Raj Chellan, held that the sequence of events was "demonstrative of a deliberate design", constituting oppression marked by a "lack of probity and fair dealing".
The ruling follows five years of litigation initiated by Moniveda Consultants LLP and Rajat Jhunjhunwala against Shajas Developers, JLS Realty, and other respondents.
The dispute concerns the Shankarwadi slum-redevelopment project in Jogeshwari East, Mumbai, spread over approximately 21,727 square metres, with estimated saleable development potential of about 11 lakh square feet.