Mining giant Vedanta has reportedly emerged as the top bidder for debt-laden Jaiprakash Associates (JAL), outbidding Gautam Adani’s Adani Group with an offer of ₹17,000 crore.
The bid gives JAL a net present value (NPV) of ₹12,505 crore, PTI reported, citing sources. The diversified conglomerate, with interests spanning real estate, cement, power, hotels, and roads, entered insolvency proceedings after defaulting on loan repayments. The National Company Law Tribunal (NCLT) Allahabad Bench admitted JAL to the corporate insolvency resolution process (CIRP) on June 3, 2024.
Financial creditors have lodged claims totaling ₹57,185 crore, with the National Asset Reconstruction Company Ltd (NARCL) leading the list after acquiring JAL’s stressed loans from a consortium of banks led by the State Bank of India. Vedanta’s winning bid covers less than a third of what lenders are owed by JP Associates.
The Anil Agarwal-led mining giant won the bid in a challenge process under the Insolvency and Bankruptcy Code (IBC). A challenge process is a competitive bidding round run by the Committee of Creditors (CoC) to maximise recovery from an insolvent company. Shortlisted bidders are invited to improve their offers in a transparent, time-bound format, often through multiple rounds.
Earlier, the CoC of JAL had received several offers from buyers, including the Adani Group, Dalmia Bharat, Vedanta Group, Jindal Power, PNC Infratech, and others, though most were conditional. The CoC therefore chose to conduct a challenge round on September 5.
In the final round, only Adani and Vedanta submitted firm offers, with Vedanta ultimately winning with its ₹17,000 crore bid, according to the news agency.
JAL’s portfolio includes major real estate developments such as Jaypee Greens in Greater Noida, part of Jaypee Greens Wishtown in Noida. It also owns three commercial and industrial office spaces in Delhi-NCR and operates five hotels across Delhi-NCR, Mussoorie, and Agra.
The group has four cement plants in Madhya Pradesh and Uttar Pradesh, along with leased limestone mines in Madhya Pradesh, although the plants are currently non-operational. JAL also holds stakes in subsidiaries including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and several others.
Its most contested asset is the Jaypee International Sports City, located near the upcoming Jewar International Airport. The 1,000-hectare project has been mired in legal trouble since the Yamuna Expressway Industrial Development Authority (YEIDA) cancelled its land allotment. While the Allahabad High Court upheld YEIDA’s decision in March, the Supreme Court is still examining the matter.
According to reports, the CoC sought assurances from bidders that they would pay additional sums if the dispute is resolved in their favour.
Meanwhile, Suraksha Group-owned Jaiprakash Infratech Ltd has approached the National Company Law Tribunal, challenging the lenders’ rejection of its previous bid for JAL. It argues that the decision was based on issues related to the earnest money deposit. The matter is scheduled for hearing on September 12.
Vedanta is also yet to seek clearance from the Competition Commission of India (CCI) to acquire the bankrupt firm, while Adani and Dalmia Bharat have already received approval from the antitrust regulator.
