Fair trade regulator Competition Commission of India (CCI) has given in-principle approval to Adani Group’s proposed acquisition of debt-ridden Jaiprakash Associates (JAL), if the conglomerate wins the ongoing insolvency process.
The approval covers acquisition of up to 100 per cent shareholding of JAL by Adani Enterprises (AEL) and Adani Infrastructure and Developers (AIDPL), or any other entity belonging to the Adani Group, the regulator said in a release.
Supreme Court ruling makes CCI approval mandatory
The clearance assumes importance as the Supreme Court recently ruled that companies must seek CCI approval before submitting a resolution plan under the Insolvency and Bankruptcy Code (IBC). The nod has to be obtained before the Committee of Creditors (CoC) votes on the plan.
In JAL’s case, the CoC is still reviewing the resolution plans received, and voting is expected in due course.
CCI also clears Dalmia Bharat bids for Jaiprakash Associates
Alongside Adani, the regulator has also cleared a proposal from Dalmia Bharat to acquire JAL. Other interested bidders include Vedanta Group, Jindal Power and PNC Infratech, who have approached the CCI for permission to submit their plans.
JAL’s massive debt load
JAL was admitted to corporate insolvency resolution by the National Company Law Tribunal (NCLT), Allahabad Bench, on June 3, 2024, after defaulting on loan repayments. Creditors are claiming a massive Rs 57,185 crore from the company.
The National Asset Reconstruction Company (NARCL) is the largest claimant, having acquired JAL’s stressed loans from a consortium of banks led by the State Bank of India.
JAL owns prime properties near Jewar Airport, Noida, and Greater Noida
JAL owns a wide portfolio of real estate and infrastructure assets. These include Jaypee Greens in Greater Noida, part of Jaypee Greens Wishtown in Noida, and the Jaypee International Sports City located near the upcoming Jewar International Airport.
The company also has three commercial and industrial office spaces in Delhi-NCR, five hotels across Delhi-NCR, Mussoorie and Agra, and four cement plants in Madhya Pradesh and Uttar Pradesh. However, the cement plants are currently non-operational. JAL also holds leases for limestone mines in Madhya Pradesh and investments in group subsidiaries such as Jaiprakash Power Ventures, Yamuna Expressway Tolling, and Jaypee Infrastructure Development.
Jaypee Infratech was earlier acquired by Suraksha Group through insolvency process
This is not the first time a Jaypee Group company has undergone insolvency. Jaypee Infratech was earlier acquired by Mumbai-based Suraksha Group through a resolution process. Suraksha is now tasked with completing nearly 20,000 stalled apartments in Noida and Greater Noida.