Wadia Group shares tumbled on Tuesday after media reports said that the group heir, Ness Wadia, has been sentenced to a two-year jail term in Japan over possession of drugs while on a skiing holiday.
Bombay Dyeing and Manufacturing Co. shares dropped as much as 17.6% to Rs102.85 apiece. Britannia Industries Ltd was down 2.9% to Rs2,882, while Bombay Burmah Trading Corp. fell as much as 6.3% to Rs1,190.35. National Peroxide Ltd shares were also trading down 5.5% to Rs2,656 apiece.
The Wadia Group clarified that Ness Wadia is currently in India and the two-year jail sentence in Japan will not impact any of his responsibilities. A spokesperson for the Wadia Group said, “Ness Wadia is in India... It is a suspended sentence. Hence it will not impact Ness Wadia in the discharge of any of his responsibilities and he will continue to play the role that he has done hitherto, both within the group and outside.”
A suspended sentence refers to a judicial punishment which is not enforced unless a further crime is committed during a specified period.
Wadia, 47, was reportedly arrested at the New Chitose Airport in the northern Japanese island of Hokkaido in early March this year after the customs officials found 25 gm of ‘cannabis resin’ in his trouser pockets. The Sapporo District Court handed him a two-year prison sentence, which was suspended for five years, according to media reports.
Wadia admitted to the possession of drugs, saying it was for his personal use, the reports added. He spent a period in detention before his indictment on 20 March and an undisclosed period of detention before a court hearing.
Ness Wadia is the son of Nusli Wadia, who heads the 283-year-old Wadia Group that is worth $7.9 billion and has interests in textiles, aviation, food and real estate, among other sectors.
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