Jackie Shroff has been embroiled in a complex legal and financial battle that has spanned nearly three decades, uncovering allegations of corporate fraud, forgery, and financial mismanagement at Atlas Equifin Pvt Ltd (Atlas). The case highlights systemic lapses in corporate governance and regulatory oversight within India’s financial ecosystem.
Jackie Shroff emerges victorious in the 30-year-long legal battle with Atlas
Speaking about the same, Jackie Shroff said, “Meri jung kafi salonse jari hai (I have been fighting this battle for years now)!! But I have complete faith in the Indian judicial system. Truth shall prevail. Adding to it, his lawyer Mr. Rahul Chitnis, continued, “My client has a good case on merits. Several courts have passed judgements in his favour in the matter. The appeals filed by the other side against these judgments have also been dismissed. I am sure that finally the other side will have to pay my client his rightful dues.”
The story began with the Formation of Atlas
In 1994, when Jackie Shroff was at the height of his acting career, he partnered with his friends and Singapore-based associates to establish Atlas Equifin Pvt Ltd. The company was created to support Sony’s entry into the Indian television market. Shroff held a 10% stake, while Indian associates owned 26% and Singapore partners controlled the remaining 64% through Alauda Securities Ltd, Mauritius.
Early Allegations of Mismanagement
While Atlas initially appeared to operate smoothly, allegations of financial misconduct surfaced in 2013. Jackie Shroff accused Atlas’ directors, including Mr. Rakesh Aggarwal, of striking private deals with Sony to sell video rights and sponsored shows, depriving Atlas of significant revenue. Shroff also alleged that Atlas failed to hold Annual General Meetings, declare dividends, or refund his share application money. In response, he filed a petition with the National Company Law Tribunal (NCLT) under Sections 397 and 398 of the Companies Act, 1956.
The Forged Signature and $80 Million Loan Scandal
Adding to the controversy, Singapore-based shareholders reportedly used their Atlas shares as collateral for an $80 million loan from Standard Chartered Bank. Jackie Shroff was allegedly asked to sign a Mandate Agreement ensuring his liability for any defaults, which he refused. In 2012, Shroff discovered a copy of the agreement bearing a forged version of his signature, prompting him to lodge a complaint with Mumbai Police’s Economic Offences Wing (EOW).
Attempts at Settlement and Arbitration
In 2013, a settlement agreement was brokered. Shroff received $1.5 million upfront, with an additional $2 million placed in escrow, contingent on the sale of Atlas’ Sony TV shares. As part of the settlement, Shroff resigned from the Atlas board and granted Power of Attorney to a friend. However, disputes over the settlement’s terms led to arbitration proceedings, resulting in an unfavourable award against Shroff. While he challenged the arbitration ruling in the Bombay High Court, his shares were attached as collateral.
Allegations of Fund Siphoning
Post-2014, Jackie Shroff accused Mr. Aggarwal of siphoning Rs. 149 crores from Atlas’ mutual fund investments. According to Shroff, the funds were funnelled into unsecured loans to entities like Grandway Advisory Services LLP and Grandway Technology Pvt Ltd – companies allegedly linked to lawyer Vishnu Jerrome. These loans were later converted into Non-Convertible Preference Rights Shares (NCPRS), rendering the Rs. 149 crore investment worthless.
Legal and Regulatory Battles
Jackie Shroff filed a second petition with the NCLT in 2024, presenting new evidence of alleged mismanagement and financial misconduct. Both the NCLT and the National Company Law Appellate Tribunal (NCLAT) ruled in Shroff’s favor, ordering Atlas to buy back his shares at a fair valuation. However, Mr. Aggarwal has reportedly failed to comply. The Supreme Court dismissed Atlas’ appeal in November 2024, solidifying Shroff’s legal victory.
Meanwhile, the Income Tax Department has been investigating allegations of money laundering involving Atlas’ funds and investments in Singapore-based entities controlled by Mr. Aggarwal since 2023.
Despite the legal rulings in his favor, Jackie Shroff’s shares in Atlas remain unpaid, and his fight for justice continues. In the the last hearing on 9th January, the Court once again rejected Atlas’ plea for more time and threatened to pass Orders for Contempt for which the hearing is fixed on Feb 7, 2025.
Also Read: Tiger Shroff applauds Jackie Shroff’s intense performance as Qadir Khan in Chidiya Udd
BOLLYWOOD NEWS – LIVE UPDATES
Catch us for latest Bollywood News, New Bollywood Movies update, Box office collection, New Movies Release , Bollywood News Hindi, Entertainment News, Bollywood Live News Today & Upcoming Movies 2025 and stay updated with latest hindi movies only on Bollywood Hungama.
