NCLAT reserves order on Vedanta’s pleas against selection of Adani’s bid for JAL
The National Company Law Appellate Tribunal (NCLAT) on Wednesday reserved its order on Vedanta’s two petitions against the selection of Adani Enterprises’ bid to acquire debt-ridden Jaiprakash Associates Ltd (JAL) through an insolvency process.
A two-member NCLAT bench comprising Chairperson Ashok Bhushan and Member Technical Barun Mitra concluded its hearing following arguments from Vedanta and respondents, including the Resolution Professional, Committee of Creditors (CoC) and Adani Enterprises. It asked both parties to submit written submissions within the next two days.
Vedanta’s counsel questioned the evaluation metrics adopted by JAL lenders, who selected the bid from Adani Enterprises offering Rs 14,535 crore and rejected Vedanta’s higher bid of Rs 17,926 crore.
On March 24, NCLAT declined any interim stay over the Vedanta Group’s plea against the order passed by the NCLT on March 17, approving Adani Group’s bid.
However, it had said that the plan would be subject to the outcome of the appeals filed by the Anil Agarwal-led Vedanta Group.
This order by NCLAT was challenged before the Supreme Court, which declined to grant a stay. However, the apex court directed that if the monitoring committee planned to take any major policy decision, it should first obtain the Tribunal’s sanction.
Adani Enterprises had outbid Vedanta and Dalmia Bharat to win the bid for JAL. Adani got the maximum 89 per cent votes from creditors, followed by Dalmia Cement (Bharat), and Vedanta Group.
The CoC defended its decision, saying the process complied with all Insolvency and Bankruptcy Code (IBC) rules. They maintained that no bidder has a guaranteed right to win, even if it offers the highest value.
They said plans were evaluated on multiple factors, including upfront cash, feasibility, and execution, not just headline value.
JAL, which has high-quality assets and business interests spanning real estate, cement manufacturing, hospitality, power and engineering & construction, was admitted to the corporate insolvency resolution process (CIRP) in June 2024, after it defaulted on payments of loans aggregating Rs 57,185 crore. JAL has major real estate projects like Jaypee Greens in Greater Noida, a part of Jaypee Greens Wishtown in Noida (both on the outskirts of the national capital), and the Jaypee International Sports City, located near the upcoming Jewar International Airport.
Besides, it has three commercial/industrial office spaces in Delhi-NCR, while its hotel division has five properties in Delhi-NCR, Mussoorie, and Agra.
Also, JAL has four cement plants in Madhya Pradesh and Uttar Pradesh, and a few leased limestone mines in Madhya Pradesh.
It also has investments in subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and several other companies.
