CCI approves Adani Group's proposal to acquire debt-ridden Jaiprakash Associates

The CoC of Jaiprakash Associates Ltd (JAL) is still reviewing the resolution plans received, and the voting will happen in due course.

The Competition Commission of India has given the in-principle approval to Adani Group's plan to acquire the debt-ridden Jaiprakash Associates if it wins a bid in the insolvency proceedings currently underway.

The anti-trust regulator said the proposed combination relates to the purchase of up to 100 percent shareholding of Jaiprakash Associates Ltd (JAL) by Adani Enterprises Ltd (AEL) and Adani Infrastructure and Developers Pvt Ltd (AIDPL) or any other entity forming part of Adani Group, a statement said on August 26.

The regulator said it has okayed the acquisition of JAL by Adani Group entities.

The nod of fair trade regulator has become mandatory for the submission of a resolution plan by an entity after a recent Supreme Court ruling on the provisions of the Insolvency and Bankruptcy Act.

The entity has to get the CCI nod before the resolution plan is voted upon by the Committee of Creditors (CoC) of the company undergoing the resolution process under the IBC.

The CoC of Jaiprakash Associates Ltd (JAL) is still reviewing the resolution plans received, and the voting will happen in due course.

Apart from Adani Group, Dalmia Bharat's proposal for JAL has been cleared by the regulator.

Various other companies, including Vedanta Group, Jindal Power and PNC Infratech, have also approached the CCI seeking nod to submit respective resolution plans to the CoC of JAL.

JAL was admitted into the corporate insolvency resolution process (CIRP) through the National Company Law Tribunal, Allahabad Bench, order dated June 3, 2024. It was taken to insolvency proceedings after the conglomerate defaulted on the payment of loans.

Creditors are claiming a staggering Rs 57,185 crore.

The National Asset Reconstruction Company Ltd (NARCL) leads the list of claimants after acquiring the stressed JAL loans from a consortium of lenders headed by the State Bank of India.

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, strategically located near the upcoming Jewar International Airport.

It also has three commercial/industrial office spaces in Delhi-NCR, while its hotel division has five properties in Delhi-NCR, Mussoorie, and Agra.

JAL has four cement plants in Madhya Pradesh and Uttar Pradesh, and a few leased limestone mines in Madhya Pradesh. The cement plants, however, are non-operational.

It also has investments in subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and several other companies.

Jaypee Group's Jaypee Infratech has already been acquired by Mumbai-based Suraksha Group through an insolvency process.

Suraksha Group has to complete various stalled projects comprising around 20,000 apartments in Noida and Greater Noida.

With PTI inputs