Adani Group Secures CCI Approval for Acquisition of Jaiprakash Associates Amid Insolvency Proceedings

The Competition Commission of India (CCI) has given its preliminary approval for the Adani Group's potential acquisition of Jaiprakash Associates Ltd (JAL), a company currently undergoing insolvency proceedings. This approval is contingent on Adani winning the bid. The acquisition involves up to 100% of JAL's shares by Adani Enterprises Ltd (AEL) and Adani Infrastructure and Developers Pvt Ltd (AIDPL), or another Adani entity.

Following a Supreme Court decision on the Insolvency and Bankruptcy Code (IBC), obtaining CCI approval is now essential before submitting a resolution plan. This approval must be secured before the Committee of Creditors (CoC) votes on the plan for any company in the resolution process under IBC. Currently, JAL's CoC is evaluating received resolution plans, with voting expected soon.

Adani Group and Other Bidders

Besides Adani Group, Dalmia Bharat's proposal for JAL has also been approved by the CCI. Other companies like Vedanta Group, Jindal Power, and PNC Infratech have approached the CCI to get clearance for their respective resolution plans for JAL. The National Company Law Tribunal, Allahabad Bench, admitted JAL into the corporate insolvency resolution process (CIRP) on June 3, 2024, due to loan defaults.

JAL owes creditors a significant Rs 57,185 crore. The National Asset Reconstruction Company Ltd (NARCL) is the primary claimant after acquiring JAL's distressed loans from a consortium led by the State Bank of India. JAL's assets include major real estate projects like Jaypee Greens in Greater Noida and Jaypee International Sports City near Jewar International Airport.

Assets and Investments

JAL owns three commercial/industrial office spaces in Delhi-NCR and five hotel properties in Delhi-NCR, Mussoorie, and Agra. It also has four cement plants in Madhya Pradesh and Uttar Pradesh, although these are currently non-operational. Additionally, JAL holds investments in subsidiaries such as Jaiprakash Power Ventures Ltd and Yamuna Expressway Tolling Ltd.

Jaypee Infratech, part of Jaypee Group, was acquired by Mumbai-based Suraksha Group through an insolvency process. Suraksha Group is tasked with completing various stalled projects, including around 20,000 apartments in Noida and Greater Noida.

With inputs from PTI