Adani emerges frontrunner to acquire Jaiprakash Associates; CoC set to vote in next two weeks

Adani Enterprises has taken the lead in the resolution process for Jaiprakash Associates, promising creditor payments within two years. The Committee of Creditors is set to vote on the preferred plan soon, with significant implications for stakeholders and India's insolvency landscape.

The resolution process for the debt-laden Jaiprakash Associates Ltd (JAL) has reached a crucial stage, with the Committee of Creditors (CoC) likely to vote on a preferred resolution plan within the next two weeks. According to sources, Adani Enterprises Ltd has emerged as the highest-scoring bidder, potentially overtaking Vedanta Ltd in the race to acquire the company.

Why Adani’s bid is leading

Adani Enterprises’ proposal has reportedly received higher marks from lenders because it promises payment to creditors within two years, while Vedanta’s plan involves a five-year payment schedule. This shorter repayment period is said to have strengthened Adani’s position in the evaluation matrix used by the CoC.

Earlier in September, Vedanta had initially been declared the highest bidder, offering a net present value (NPV) of about ₹12,505 crore. Following that, five bidders — Adani Enterprises, Vedanta, Dalmia Cement (Bharat) Ltd, Jindal Power Ltd, and PNC Infratech Ltd — submitted signed resolution plans in sealed envelopes. These were later evaluated by the lenders on feasibility, payment timelines, and overall viability. In the most recent round of assessments, Adani’s plan scored the highest, followed by Dalmia Cement and then Vedanta.

Jaiprakash Associates, part of the Jaypee Group, was admitted into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT), Allahabad Bench, on June 3, 2024, after it defaulted on large loan repayments. Financial creditors’ claims amounting to around ₹60,000 crore have been admitted by the resolution professional.

What’s at stake

The company has a diverse asset base, including:

• Major real-estate projects such as Jaypee Greens and Wishtown in Noida, and the Jaypee International Sports City near the upcoming Jewar International Airport.

• Five hotel properties in Delhi-NCR, Mussoorie and Agra.

• Four cement plants across Madhya Pradesh and Uttar Pradesh (currently non-operational).

• Subsidiaries and leases related to limestone mining, power, and infrastructure.

  Next steps

  The Committee of Creditors is expected to hold a formal

  The Committee of Creditors is expected to hold a formal vote within the next two weeks. Once the preferred plan — likely Adani’s — is approved, it will be sent to the NCLT for final confirmation. For now, home-buyers, vendors, and lenders are watching closely, as the outcome could finally bring clarity to one of India’s longest-running insolvency cases.

  Implications

  • *For lenders:* Adani’s shorter repayment schedule promises quicker recovery.

  • **For stakeholders:* Approval of a strong resolution plan may revive stalled housing and infrastructure projects.

  • **For India’s insolvency ecosystem:* This case could serve as a model for large-scale corporate resolutions that attract major industrial bidders.