Jaiprakash Infratech Challenges Bid Rejection: Legal Battle Looms
Jaiprakash Infratech is considering a legal challenge against the rejection of its bid to acquire Jaiprakash Associates, citing a lien over fixed deposits instead of a ₹100 crore deposit. This move could further delay the insolvency resolution process.
Jaiprakash InfratechInsolvencyBid RejectionLegal ChallengeCocReal Estate MumbaiAug 03, 2025
The lien over the fixed deposits was deemed legally valid and submitted on time, a source told Business Standard. “We have no option but to move the court and remain in the race,” the source added. This development is likely to further delay the insolvency resolution process for Jaiprakash Associates.
Jaiprakash Infratech, which was part of the insolvent real estate-to-cement conglomerate, was acquired by Mumbai-based Suraksha Group in June last year. The company's decision to challenge the bid rejection in court highlights the complexities and potential legal battles that can arise during insolvency proceedings.
This development is further complicating Jaiprakash Associates' road to insolvency. The mismatch in the nature of the proposal has already left the CoC puzzled, as reported by the Economic Times. The stake sale race has five major players, including the Adani Group, Vedanta, Dalmia Bharat Cement, Jindal Power, and PNC Infratech. While the billionaire Gautam Adani-led Adani Group has submitted an unconditional bid to acquire the insolvent conglomerate, others in the race have proposed conditional bids.
The Adani Group has submitted a ₹12,600 crore bid, while others have proposed as high as ₹14,000 crore for the real estate-to-cement conglomerate. Adani Group’s bid is reportedly the strongest as it is not based on the outcome of the ongoing case against the contested property. Others have submitted their bids, which are contingent on the outcome of the legal proceedings.
Jaiprakash Associates entered the insolvency process in June 2024 following an order by the National Company Law Tribunal (NCLT) for defaulting on loans worth ₹57,000 crore. The company's insolvency resolution has been a closely watched process, with multiple bidders and legal challenges complicating the proceedings. The Suraksha Group's acquisition of Jaiprakash Infratech and the company's potential legal challenge add another layer of complexity to the already intricate process.
Frequently Asked Questions
What is the reason for Jaiprakash Infratech's bid rejection?
Jaiprakash Infratech's bid was rejected by the Committee of Creditors (CoC) due to insufficient earnest money deposit (EMD), non-compliance with the prescribed format, and delays in submission.
What alternative did Jaiprakash Infratech propose instead of the ₹100 crore deposit?
Jaiprakash Infratech proposed a lien over fixed deposits as an alternative to the required ₹100 crore earnest money deposit (EMD).
Who are the major players in the bid for Jaiprakash Associates?
The major players in the bid for Jaiprakash Associates include the Adani Group, Vedanta, Dalmia Bharat Cement, Jindal Power, and PNC Infratech.
What is the amount of the Adani Group's bid for Jaiprakash Associates?
The Adani Group has submitted a ₹12,600 crore bid to acquire Jaiprakash Associates.
When did Jaiprakash Associates enter the insolvency process?
Jaiprakash Associates entered the insolvency process in June 2024 following an order by the National Company Law Tribunal (NCLT) for defaulting on loans worth ₹57,000 crore.
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