Indian authorities are investigating Jindal Poly Films Ltd.'s 2012 acquisition of ExxonMobil Chemical Co.'s biaxially oriented polypropylene films business, according to a local newspaper report.
The Hindu Business Line & Business Standard reported July 27 that the Securities and Exchange Board of India is examining complaints from investors in 2013, alleging that promoters of the deal may have made gains through shell companies floated overseas and that concealed their role in order to avoid taxes.
Jindal Poly acquired ExxonMobil's film business through a Dutch entity, JPF Netherlands BV, which was 51 percent owned by Jindal Poly and 49 percent by Anchor Image & Films Singapore, but shareholders were not told of Anchor's stake, the paper said.
The paper said the Singapore firm is a 100 percent subsidiary of Anchor India Image & Films, which is held by a company called Soyuz Trading and Rishi Trading, which is owned and controlled by members of the Jindal family.
Officials from Jindal Poly, based in New Delhi, did not respond to requests for comment, according to the report.
