Adani Group's Bid for Debt-Ridden Jaiprakash Associates Receives CCI Approval

New Delhi, Aug 26 (PTI) The Competition Commission of India (CCI) has in principle approved Adani Group's acquisition of debt-ridden Jaiprakash Associates, should it win a bid in the ongoing insolvency proceedings. This approval is a crucial step in the resolution process, as entities must secure CCI's nod before submitting their resolution plans to the Committee of Creditors (CoC).

The proposed combination involves the acquisition of up to 100% shareholding of Jaiprakash Associates Ltd (JAL) by Adani Enterprises Ltd (AEL) and Adani Infrastructure and Developers Pvt Ltd (AIDPL) or any other entity within the Adani Group. The CCI's approval is mandatory due to a recent Supreme Court ruling interpreting provisions of the Insolvency and Bankruptcy Code (IBC).

Following this ruling, entities must obtain CCI's approval before their resolution plans are voted upon by the CoC. The CoC of Jaiprakash Associates Ltd (JAL) is currently reviewing the resolution plans received, and the voting process will take place in due course.

Apart from Adani Group, Dalmia Bharat's proposal for JAL has also been cleared by the regulator. Other companies, including Vedanta Group, Jindal Power, and PNC Infratech, have approached the CCI seeking approval to submit their respective resolution plans to the CoC of JAL.

Jaiprakash Associates Ltd (JAL) was admitted into the corporate insolvency resolution process (CIRP) through a National Company Law Tribunal (NCLT) order dated June 3, 2024, after the conglomerate defaulted on loan payments. Creditors are claiming a staggering ₹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 significant real estate projects, including Jaypee Greens in Greater Noida, a part of Jaypee Greens Wishtown in Noida, 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 and five hotel properties in Delhi-NCR, Mussoorie, and Agra.

Additionally, JAL owns four cement plants in Madhya Pradesh and Uttar Pradesh, along with a few leased limestone mines in Madhya Pradesh. However, the cement plants are currently non-operational. JAL 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 is tasked with completing various stalled projects comprising around 20,000 apartments in Noida and Greater Noida.

The CCI's approval is a significant milestone for Adani Group, which could bolster its presence in the real estate and infrastructure sectors. The resolution process for JAL is ongoing, and the final outcome will determine the future of this once-prominent conglomerate.