Jaiprakash Infratech is mulling to move court against the rejection of its bid to acquire Jaiprakash Associates. The real estate firm had proposed a lien over fixed deposits instead of a ₹100 crore deposit. The committee of creditors (CoC), however, rejected the company’s bid, citing an insufficient earnest money deposit (EMD), non-compliance with the prescribed format and delays in submission, the Business Standard reported. The development is likely to further delay the insolvency resolution of Jaiprakash Associates.
“The lien over the fixed deposits was legally valid and submitted on time,” BS reported, citing a source. “We have no option but to move the court and remain in the race,” the source added.
Jaiprakash Infratech, which was earlier part of the insolvent real estate-to-cement conglomerate, was acquired by Mumbai-based Suraksha Group in June last year.
This development is further going to complicate JaiPrakash Associates's road to insolvency. The mismatch in the nature of the proposal has already left the CoC puzzled, the Economic Times earlier reported. The stake sale race has five major players, including the Adani Group, Vedanta, Dalmia Bharat Cement, Jindal Power and PNC Infratech. While the billionaire Gautam Adani-led Adani Group has submitted an unconditional bid to acquire the insolvent conglomerate, others in the race have proposed a conditional bid. While Adani Group has submitted a ₹12,600 crore bid, others have proposed as high as ₹14,000 crore for the real estate-to-cement conglomerate. Adani Group’s bid to take over the debt-ridden giant is reportedly the strongest as it is not based on the outcome of the ongoing case against the contested property. Others have submitted their bids which are based on the outcome of the case.
JaiPrakash Associates entered the insolvency process in June 2024 following an order by the National Company Law Tribunal (NCLT) for defaulting on loans worth ₹57,000 crore.
