The latest in the Vedanta-Adani tussle over JAL takeover, the National Company Law Appellate Tribunal NCLAT dismissed the two petitions filed by Vedanta. “There is no merit in the appeal. Both appeals are dismissed. There shall be no orders to pass,” said NCLAT, according to PTI.
In the petition, the mining group, Vedanta had challenged the selection of Adani Enterprises’ bid for debt-ridden Jaiprakash Associates (JAL).
According to a PTI report, a two-member bench comprising Chairperson Ashok Bhushan and Member Technical Barun Mitra said, “No grounds have been made out by the appellant (Vedanta) to interfere with the decision of the adjudicating Authority (NCLT).”
NCLAT said that the decision of the Committee of Creditors (CoC) was based on “overall consideration of the respective resolution plan” and there has been “no material irregularity committed by Resolution Professional while conducting the plan resolution process.”
NCLAT finds no irregularity in JAL resolution process
NCLAT also dismissed Vedanta’s plea, where it had questioned the evaluation metrics adopted and had said its bid was Rs 3,400 crore higher in gross value terms and roughly Rs 500 crore more in net present value compared to the Adani Group’s bid.
Rejecting this, NCLAT said “decision of CoC not approving the resolution plan of the appellant with a higher plan value of Rs 3,400 crores and NPV of Rs 500 crore as compared to plan of respondent No 3 (Adani) cannot be said to be arbitrary or perverse.”
What has happened so far
On March 17, the NCLT, Allahabad bench, approved Adani Enterprises’ Rs 14,535-crore bid to acquire JAL through the insolvency process. This was challenged by Vedanta before the appellate tribunal NCLAT.
On April 23, the insolvency appellate tribunal had concluded its hearing after hearing the petitioner Vedanta and respondents, including the Resolution Professional, Committee of Creditors (CoC) and Adani Enterprises.
Vedanta has questioned the evaluation metrics adopted by lenders of JAL, which had selected the lower bid of Rs 3,400 crore from Adani Enterprises for the debt-ridden company and questioned the commercial wisdom of CoC.
Earlier, on March 24, NCLAT declined any interim stay over the Vedanta Group’s plea against the order passed by the NCLT approving Rs 14,535-crore bid by the Adani Group for acquiring JAL.
However, it had also said the plan would be subject to the outcome of the appeals filed by the Anil Agarwal-led Vedanta Group.
This interim order by NCLAT was challenged before the Supreme Court, which also declined to grant a stay. However, the apex court had directed that if the monitoring committee planned to take any major policy decision, it should first obtain the Tribunal’s sanction.
Adani wins JAL bid with 89% creditor votes; CoC defends process
Adani Enterprises had outbid Vedanta and Dalmia Bharat to win the bid for JAL. Adani got the maximum 89% votes from creditors, followed by Dalmia Cement (Bharat), and Vedanta Group.
The CoC defended its decision, saying the process complied with all Insolvency and Bankruptcy Code (IBC) rules. They maintained that no bidder has a guaranteed right to win, even if it offers the highest value.
They said plans were evaluated on multiple factors, including upfront cash, feasibility, and execution, not just headline value.
About JAL
JAL, which has high-quality assets and business interests spanning real estate, cement manufacturing, hospitality, power and engineering & construction, was admitted to the CIRP in June 2024 after it defaulted on payments of loans aggregating Rs 57,185 crore.
Share price of Vedanta
The share price of Anil Aggrawal-led Vedanta has surged 6.96% in the intra-day session.
Share Price of Adani Group stocks
Adani group stocks are trading in green today. The share price of Gautam Adani-led Adani Enterprises has gained 3.06% in the intra-day session from the previous day close.