JSW One Platforms' draft red herring prospectus reveals that its promoters are involved in 340 tax-related matters and three criminal proceedings, with the total litigation exposure amounting to approximately ₹1.39 trillion.
The DRHP also discloses five pending tax matters against JSW One Platforms itself, involving an aggregate of ₹95.71 million, while the company says no criminal proceedings are pending against or by it. Its subsidiaries are shown to be part of one criminal proceeding and four tax matters totalling ₹18.29 million, and have initiated three criminal proceedings. Meanwhile, the company's directors face three actions from statutory or regulatory authorities, with no tax or criminal cases reported against them.
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Beyond the tax and criminal counts, promoters are additionally subject to 36 actions by statutory or regulatory authorities, six disciplinary actions from SEBI or stock exchanges in the last five fiscal years, and 11 other material litigation items. Promoters have also initiated 210 proceedings amounting to roughly ₹78.28 billion, plus nine other material litigation matters. The filing notes that JSW Steel plans to offload up to ₹811 crore via an offer for sale, JSW Cement up to ₹123 crore, and existing investor Mitsui & Co up to ₹820.01 crore. It further states that one group company acquired through the IBC process remains listed in defaulter and wilful defaulter databases, though the company says the defaults predate its acquisition and it has obtained no-dues certificates and sought removal from those lists.
JSW One Platforms cautions that any adverse ruling in these legal proceedings could lead to liabilities, penalties and reputational harm, potentially affecting business operations and cash flows, while adding that none of its group companies are presently involved in proceedings that would have a material adverse impact on the company.
