Shashijit Infraprojects board has decided not to recommend the removal of Chairman and Managing Director Ajit Jain, despite a shareholder resolution proposing his ouster. The board cited Jain's long-standing association with the company and his strategic contributions to its business development.

The decision follows a special notice received on September 15, 2026, from member Rajesh Kumar Sodhani. Sodhani holds 90,00,000 equity shares, representing approximately 12.38% of the paid-up equity share capital. He invoked Section 115 read with Section 169(2) of the Companies Act, 2013, to propose the removal.

Shareholder Grounds for Removal

In the special notice, Sodhani argued that under the present chairmanship, the company had not performed to its full potential or met public shareholder expectations. He stated that no significant value had been created for shareholders during Jain's tenure, with growth and returns remaining stagnant. The proposing shareholder expressed a loss of confidence in Jain's ability to lead the company toward growth and profitability, advocating for professional leadership and better corporate governance to reorganize the board.

Board Response and Director Representation

At its meeting held on September 21, 2026, the board considered the special notice along with a written representation from Mr. Ajit Jain (DIN: 01846992) under Section 169(4) of the Companies Act, 2013. The directors approved the inclusion of the proposed resolution as Item No. 5 in the special business for the 19th Annual General Meeting scheduled for September 30, 2026.

The board noted that Mr. Ajit Jain has been associated with the company since its inception, providing leadership in construction and infrastructure operations. The board highlighted his role in identifying business opportunities, managing customer relationships, and guiding project evaluation. Consequently, the board is of the view that members should consider the matter based on complete information but explicitly stated that it does not recommend the ordinary resolution for approval.

Director's Defense

Mr. Ajit Jain submitted a written representation stating that the allegations were broad and should be viewed in the context of the company's overall financial position and business cycle. He emphasized his three decades of experience in the construction industry and his continuous involvement in business development and operational matters. Jain argued that continuity in management provides benefits such as existing industry knowledge and stakeholder relationships, while acknowledging the importance of professional governance.

What the Numbers Show

The concentration of voting power is notable in this corporate action. Rajesh Kumar Sodhani’s stake of 12.38% provides him with sufficient equity interest to trigger a special notice under the Companies Act, allowing a single shareholder to place a removal resolution on the ballot without requiring broader initial support from other members.

Shashijit Infraprojects Limited disclosed that its ongoing litigation regarding a leased property dispute with Vapi Municipal Corporation has been adjourned. The Hon'ble High Court of Gujarat postponed the hearing scheduled for September 14, 2026, to September 25, 2026.

The company filed this update under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure references previous updates issued on February 15, 2024, and multiple dates in June, July, and August 2026.

Case Status Details

The matter remains pending before the Gujarat High Court. No adjudication on the merits of the case has occurred as of the disclosure date. The dispute concerns leased property acquired from the Vapi Municipal Corporation, formerly known as Vapi Nagar Palika.

Regulatory Compliance

The company confirmed that the information is available on its website. The disclosure aligns with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated January 30, 2026. No settlement terms or compensation details were reported, as the proceedings are still active.