NCLAT Dismisses Vedanta’s Appeal; Adani Group’s Path Cleared for Acquisition of Jaiprakash Associates
The National Company Law Appellate Tribunal (NCLAT) has dismissed two petitions filed by Vedanta Limited. Barring any further hurdles, the path has now been cleared for the Adani Group to acquire Jaiprakash Associates. In these petitions, Vedanta had challenged the selection of Adani Enterprises Limited’s bid for the debt-ridden Jaiprakash Associates Limited. A two-member bench comprising Justice Ashok Bhushan and Technical Member Barun Mitra observed, “No grounds have been established by the appellant (Vedanta) that would warrant interference with the decision of the NCLT. The appeal lacks merit. Both appeals are dismissed. No further orders are required.”
What Vedanta Argued
The Appellate Tribunal noted that the decision of the Committee of Creditors (CoC) was based on a “holistic evaluation of various resolution plans” and their commercial wisdom. The NCLAT further stated that no “material irregularity” was committed by the Resolution Professional during the resolution process. Questioning the evaluation criteria, Vedanta had argued that its bid was higher by ₹3,400 crore in terms of gross value and approximately ₹500 crore on a Net Present Value (NPV) basis. Dismissing this contention, the NCLAT held that the CoC’s decision not to approve a higher-value plan could not be termed “arbitrary or unreasonable.”
Adani Group’s ₹14,535 Crore Bid Had Been Approved
Earlier, on March 24, the NCLAT had refused to grant an interim stay on a petition filed by the Vedanta Group, which challenged an order issued by the National Company Law Tribunal (NCLT) on March 17. However, the NCLAT had stated that the final outcome would be contingent upon the result of the appeal. On March 17, the Allahabad Bench of the Company Law Tribunal approved Adani Enterprises Ltd.’s bid of ₹14,535 crore for the acquisition of Jaiprakash Associates Ltd.—a decision that was subsequently challenged by Vedanta before the NCLAT.
Vedanta Met with Disappointment at the Supreme Court as Well
Vedanta had also challenged this order in the Supreme Court, but the court declined to grant a stay. However, the apex court directed that the Monitoring Committee of Jaiprakash Associates must seek the Tribunal’s permission before making any major policy decisions. Adani Enterprises emerged victorious in the bidding process for Jaiprakash Associates, outperforming both Vedanta Ltd. and Dalmia Bharat. Adani Enterprises secured the highest share of votes from the creditors—amounting to 89 percent. The NCLAT concluded its hearings on April 23, after listening to arguments from all parties involved, including Vedanta, the Resolution Professional, the Committee of Creditors (CoC), and Adani Enterprises Ltd.
Jaiprakash Associates Faces a Debt Burden of ₹57,185 Crore
It is worth noting that Jaiprakash Associates—the flagship company of the JP Group—was admitted into the Corporate Insolvency Resolution Process in June 2024, following a default on debt repayments totaling ₹57,185 crore. Jaiprakash Associates possesses key real estate projects, such as ‘JP Greens’ in Greater Noida. The company operates four cement plants across Madhya Pradesh and Uttar Pradesh, in addition to holding leases for several limestone mines in Madhya Pradesh. Furthermore, it has made investments in various subsidiary companies, including Jaiprakash Power Ventures Ltd., Yamuna Expressway Tolling Ltd., JP Infrastructure Development Ltd., and several others.
