Synopsis : The Competition Commission of India (CCI) has granted in-principle approval to Adani Group and Dalmia Bharat to bid for debt-laden Jaiprakash Associates, paving the way for resolution of its ₹57,185 crore debt. Final approval now hinges on voting by the Committee of Creditors (CoC).
The Competition Commission of India (CCI) has given a crucial in-principle nod to the proposed acquisitions of Jaiprakash Associates (JAL) by Adani Group and Dalmia Bharat, subject to the ongoing insolvency process. JAL, weighed down by a massive debt of ₹57,185 crore, was admitted to corporate insolvency resolution by the NCLT Allahabad Bench on June 3, 2024.
According to the CCI order, the approval covers the acquisition of up to 100% shareholding in JAL by Adani Enterprises (AEL) and Adani Infrastructure and Developers (AIDPL), or other Adani entities. Similarly, Dalmia Bharat’s proposal has also received clearance. Other interested bidders—Vedanta Group, Jindal Power, and PNC Infratech—have also approached the regulator for necessary approvals.
Supreme Court Mandate:
The development gains significance following a Supreme Court ruling mandating that resolution applicants must obtain CCI clearance before the Committee of Creditors (CoC) votes on any insolvency plan. In JAL’s case, voting by the CoC is still pending.
Assets Under JAL:
JAL owns a portfolio of high-value assets, including Jaypee Greens (Greater Noida), Jaypee Wishtown (Noida), and the Jaypee International Sports City near the upcoming Jewar International Airport. The company also has three commercial office spaces in Delhi-NCR, five hotels across NCR, Mussoorie, and Agra, and four cement plants in Madhya Pradesh and Uttar Pradesh (currently non-operational). Additionally, JAL holds limestone mining leases and stakes in group firms like Jaiprakash Power Ventures, Yamuna Expressway Tolling, and Jaypee Infrastructure Development.
Background:
This is not the first insolvency case involving Jaypee Group firms. Earlier, Jaypee Infratech was acquired by the Suraksha Group through a resolution process, with a mandate to complete nearly 20,000 stalled apartments in Noida and Greater Noida.
As JAL’s creditors—including NARCL, the largest claimant after taking over loans from SBI-led banks—await resolution, the entry of Adani and Dalmia Bharat is expected to fast-track the revival of the debt-ridden conglomerate.
Disclaimer : This article is for informational purposes only. It should not be considered investment, financial, or legal advice. Readers are advised to consult professionals before making decisions.
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