In Japan, suspended sentences can be applied in cases where a sentence is up to 3 years in prison and/or 500,000 yen ($4,491) in fines. Any criminal activity during this period results in the cancellation of the sentence and imprisonment for the prescribed term.
On Tuesday, the stocks of Wadia Group companies, including Bombay Dyeing and Bombay Burmah, declined after the media reported Wadia's arrest. Bombay Burmah closed 1.5 per cent down while the Bombay Dyeing stock closed 9.8 per cent down on the BSE. Britannia was down by 2.5 per cent.
"This is a knee-jerk reaction of the stock market as Ness is not looking after the day-to-day management of any key company," said a market analyst. "Almost all Wadia group companies are professionally run and it is Jeh Wadia who is more hands on in the management of the company," he said, adding: "So, the impact will be minimal."
Ness, who owns a stake in IPL team Kings XI Punjab, first made headlines in June 2014 when actress Preity Zinta complained to Mumbai Police and later to Bombay High Court against him, alleging he attacked her during an IPL match. Ness had denied the charges.
The matter was later settled out of court and the court dismissed the case in October 2018.
An alumnus of Cathedral & John Connon School in Mumbai, Ness, who loves high-end fast cars, joined Bombay Dyeing in 1993 as a management trainee at the age of 22. In 1998, he went to the University of Warwick to pursue a master's degree. After receiving his master's degree in 2001, he rejoined Bombay Dyeing and was promoted to joint managing director. In 2011, he stepped down from Bombay Dyeing after his younger brother Jeh took over as the MD.
At present, Ness is the managing director of Bombay Burmah Trading Corp and also looks after the charity initiatives of the group. Ness is a director on the board of Wadia group's oldest firm Bombay Dyeing, and Britannia. The 283-year-old Wadia Group also runs Go Air. The Wadia family have a net worth of $7 billion.