Vedanta has sought CCI approval for its ₹17,000 crore bid to acquire bankrupt Jaiprakash Associates.
The offer reportedly includes ₹3,800 crore upfront and annual payments of ₹2,500–3,000 crore over five years.
JAL, with dues of over ₹57,185 crore, has interests in real estate, cement, hospitality, EPC, and more.
Anil Agarwal-led mining conglomerate Vedanta has approached the Competition Commission of India (CCI) for approval of its bid to acquire the bankrupt real estate group Jaiprakash Associates (JAL). The application comes days after the company won the challenge process under the insolvency resolution.
Vedanta has reportedly offered ₹17,000 crore for JAL, which has interests spanning real estate, cement, hospitality, engineering, procurement, and construction. The proposal includes ₹3,800 crore upfront and ₹2,500–3,000 crore annually over the next five years, taking the net present value of the offer to ₹12,505 crore.
Jaiprakash Associates’ creditors have filed claims of over ₹57,185 crore in unpaid dues. The company was admitted into bankruptcy last year.
In its submission to CCI, Vedanta stated that its proposal “is not likely to cause any appreciable adverse effect on competition in India.”
What’s Ahead for JAL?
Before Vedanta, Adani Group and Dalmia Bharat had also sought CCI approval for their bids for JAL. The approval mandate arises from a Supreme Court ruling, which held that under the provisions of the Insolvency and Bankruptcy Code (IBC), competition clearance is mandatory before submission of a resolution plan.
However, neither of those bids progressed. Earlier this year, as many as 25 companies had shown interest in acquiring JAL’s stressed assets. By June, only five bids were submitted—by Adani Enterprises, Dalmia Bharat Cement, Vedanta Group, Jindal Power, and PNC Infratech.
Except for Adani, the bids were conditional. The companies had linked higher valuations to JAL’s prized asset, the Jaypee International Sports City, located near the upcoming Jewar International Airport. However, the land, allocated by the Yamuna Expressway Industrial Development Authority (YEIDA), was later withdrawn over environmental concerns. The matter is now before the Supreme Court.
To maximise value, JAL’s Committee of Creditors (CoC) decided to conduct a challenge process, where only Adani and Vedanta participated. Vedanta eventually emerged as the top bidder, outpacing Gautam Adani’s port-to-power conglomerate.
