NEW DELHI: The Competition Commission of India (CCI) has granted approval for Dalmia Bharat’s acquisition of Jaiprakash Associates Ltd (JAL), which is undergoing the insolvency resolution process.
As stipulated by the Insolvency and Bankruptcy Code (IBC), approval from the competition authority is essential for submitting a resolution plan to participate in the bidding process.
Other interested candidates in acquiring the financially troubled JAL, which spans various sectors including cement, real estate, hospitality, and fertilizer, include Adani Enterprises, Vedanta Group, Jindal Power, and PNC Infratech, all of whom have sought CCI approval for their respective plans.
A Supreme Court ruling necessitates obtaining CCI approval prior to the Committee of Creditors voting on any resolution plan deemed a combination under the Competition Act.
The CCI stated, “The proposed combination involves a complete acquisition of Jaiprakash Associates Ltd (JAL) by Dalmia Cement (Bharat) Ltd as part of a corporate insolvency resolution process (CIRP) under the IBC.” Dalmia Cement (Bharat) Ltd is a wholly owned subsidiary of Dalmia Bharat Ltd (DBL), the group’s flagship company.
While DBL predominantly focuses on manufacturing and selling cement, JAL operates across various sectors, including cement, real estate, hospitality, and engineering, procurement, and construction.
JAL is involved in diverse activities, including real estate development and cement production.
The CCI announced, “Commission approves the proposed acquisition of Jaiprakash Associates Ltd by Dalmia Cement (Bharat) Ltd,” via a post on X.
A similar filing has been made by the Adani Group regarding the same insolvency proceedings.
JAL entered the CIRP through an order from the National Company Law Tribunal, Allahabad Bench on June 3, 2024, following payment defaults on loans.
Creditors are demanding an astounding Rs 57,185 crore.
The National Asset Reconstruction Company Ltd (NARCL) heads the list of creditors after acquiring JAL’s distressed loans from a lender consortium led by the State Bank of India.
JAL manages major real estate projects, including Jaypee Greens in Greater Noida, parts of Jaypee Greens Wishtown in Noida, and the Jaypee International Sports City near the upcoming Jewar International Airport.
Additionally, it owns three commercial/industrial office spaces in the Delhi-NCR region and operates five hotel properties in Delhi-NCR, Mussoorie, and Agra.
JAL also operates four cement plants in Madhya Pradesh and Uttar Pradesh, although these facilities are currently non-operational.
Furthermore, it has investments in several subsidiaries, such as Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, and Jaypee Infrastructure Development Ltd, among others.
The Jaypee Group’s Jaypee Infratech has already been acquired by Mumbai-based Suraksha Group through an insolvency process, which involves completing numerous stalled projects, including around 20,000 apartments in Noida and Greater Noida.
