NEW DELHI: The Competition Commission of India (CCI) has in principle approved Adani Group’s acquisition of the financially troubled Jaiprakash Associates, contingent on a successful bid in the ongoing insolvency proceedings.
The proposed transaction involves Adani Enterprises Ltd (AEL) and Adani Infrastructure and Developers Pvt Ltd (AIDPL) seeking to acquire up to 100% of Jaiprakash Associates Ltd (JAL), as outlined in a statement from the regulator on Tuesday.
The CCI noted that an approval is essential for the concerned entity to submit a resolution plan following a recent Supreme Court ruling regarding the Insolvency and Bankruptcy Code (IBC).
The approval must be obtained before the resolution plan can be voted on by the Committee of Creditors (CoC) overseeing the resolution process under the IBC.
The CoC for Jaiprakash Associates Ltd (JAL) is currently evaluating the resolution plans it has received, with voting scheduled to occur soon.
In addition to Adani Group, the CCI has also cleared the proposal from Dalmia Bharat for JAL. Various other companies, including Vedanta Group, Jindal Power, and PNC Infratech, have approached the CCI seeking permission to present their resolution plans to JAL’s CoC.
JAL was admitted to the corporate insolvency resolution process (CIRP) by the National Company Law Tribunal in Allahabad on June 3, 2024, after the conglomerate defaulted on loan payments.
Creditors are claiming a massive ₹57,185 crore, with the National Asset Reconstruction Company Ltd (NARCL) leading the list of claimants after acquiring JAL’s stressed loans from a consortium led by the State Bank of India.
JAL manages several significant real estate projects, including Jaypee Greens in Greater Noida and Jaypee International Sports City, positioned near the upcoming Jewar International Airport.
It also owns three commercial and industrial office spaces in the Delhi-NCR region, and its hotel division operates five properties in Delhi-NCR, Mussoorie, and Agra.
While JAL has four cement plants in Madhya Pradesh and Uttar Pradesh, these facilities are currently non-operational, and it also has several leased limestone mines in Madhya Pradesh.
The company holds investments in subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and others.
Jaypee Infratech, part of the Jaypee Group, has already been acquired by the Mumbai-based Suraksha Group through an insolvency process, which is set to complete various stalled projects comprising around 20,000 apartments in Noida and Greater Noida.
