Wadia Group Shares Plunge As Ness Wadia Sentenced To Jail In Japan

Shares of Wadia Group companies fell on Tuesday after Ness Wadia, one of its promoters, was sentenced to two years in jail by a Japanese court for possession of drugs. Bombay Dyeing, Britannia Industries and Bombay Burmah Trading Company shares ended 10.45 per cent, 2.31 per cent and 0.91 per cent lower on the National Stock Exchange respectively. Ness Wadia was arrested at the New Chitose Airport in the northern Japanese island of Hokkaido.

Bombay Dyeing shares plummeted as much as 17.6 per cent during the session, while Britannia Industries and Bombay Burmah fell 3 per cent and 6.2 per cent respectively.

Meanwhile, Ness Wadia's arrest in early March and subsequent sentencing in a Japanese court over possession of drugs will not affect "the discharge of any of his business-related responsibilities", the Wadia Group said in a statement.

Ness Wadia, the son of industrialist Nusli Wadia and co-owner of the Indian Premier League (IPL) franchise Kings XI Punjab, was sentenced to two years in jail by a Sapporo court after his arrest while on a skiing holiday to Japan. The punishment was later suspended for five years.

The Wadia Group is one of the oldest business conglomerates in India. The group was founded by Lovji Nusserwanjee Wadia in 1736. Its current chairman is Nusli Wadia, whose two sons - Jehangir and Ness - are actively involved in running the group businesses.

Ness Wadia serves as the managing director of Bombay Burmah Trading Company and chairman of National Peroxide. He also serves as director on the boards of various Wadia Group companies such as Britannia Industries, Bombay Dyeing, GoAir and Wadia Techno Engineering Services.