Jaypee Group founder Jaiprakash Gaur backed lenders’ decision to select the Adani Group as the successful bidder for Jaiprakash Associates Ltd (JAL), saying the group “fully respects” the outcome of the insolvency process. In a statement, Gaur described JAL as more than a company and acknowledged the financial stress that led to insolvency proceedings.
“The recent financial challenges that led to the Corporate Insolvency Resolution Process have been difficult for all stakeholders,” Gaur said.
“I appreciate the fair and transparent process conducted by the Committee of Creditors and the Resolution Professional, and I thank both the Adani Group and the Vedanta Group for their participation and interest,” he added.
Gaur also expressed confidence that under Gautam Adani’s leadership, the company’s legacy would be carried forward while meeting stakeholder expectations.
Legacy and Transition
The endorsement came even as the matter was contested before the National Company Law Appellate Tribunal (NCLAT), where Vedanta challenged the approval of Adani Group’s Rs 14,535 crore resolution plan. The tribunal heard Vedanta’s arguments on April 10 and listed the matter for further hearing on April 13.
Vedanta’s representative in the tribunal argued that its own bid of around Rs 17,926 crore was materially higher, offering about Rs 3,400 crore more in gross value and Rs 500 crore higher net present value (NPV). It also contended that the CoC chose a lower-value plan without adequate discussion, despite its offer being superior on recovery metrics.
Multi-Billion Dispute
A key argument centred on the fiduciary role of financial creditors. Vedanta’s lawyers argued that the CoC is required to balance the interests of all stakeholders, including operational creditors, employees and homebuyers, and that favouring higher upfront payments over overall recovery runs counter to the objective of value maximisation.
The company also questioned the conduct of the bidding process. It said that after introducing a challenge mechanism due to sub-optimal bids, the CoC approved the same plan it had earlier found inadequate. Vedanta lawyers added that it was the only active participant in the five-round challenge process, improving its bid twice while indicating willingness to raise it further.
Vedanta further flagged lack of transparency in the process. While bidders were required to submit both upfront and deferred payment components, only the highest NPV was disclosed after each round, limiting its ability to optimise the structure of its bid.
It also argued that the approved plan was below JAL’s liquidation value of about Rs 15,799.53 crore, implying that creditors may have recovered more through liquidation. Vedanta maintained that process documents such as the evaluation matrix and request for resolution plans cannot override the core objective of maximising value under the insolvency framework.