Adani Group Entities get CCI nod to accumulate full stake in Jaiprakash Associates

The Competitors Fee of India (CCI) on Tuesday permitted the acquisition of Jaiprakash Associates Restricted (JAL) by Adani Enterprises Restricted and Adani Infrastructure and Builders Non-public Restricted by the company insolvency decision course of.

In its order, the CCI acknowledged: “The acquirers are backed by promoters, administration, and different Adani Group firms who’ve a powerful monitor report in buying and turning round distressed firms post-acquisition.”

The announcement, additionally shared on CCI’s X (previously Twitter) deal with, acknowledged that Adani Enterprises (AEL), Adani Infrastructure and Builders (AIDPL), or every other Adani entity might purchase as much as 100% stake in JAL. An in depth order on the approval will observe.

JAL is at the moment present process company insolvency decision proceedings underneath the Insolvency and Chapter Code, 2016, as directed by the Nationwide Firm Regulation Tribunal (NCLT), Allahabad Bench. The Adani Group had submitted its proposal to CCI in July after making an unconditional bid for the debt-ridden conglomerate.

The regulator additionally famous that the Adani Group has in depth expertise in reviving distressed property throughout each normal and specialised enterprise sectors.

Earlier this month, on August 5, CCI had additionally permitted a competing bid from Dalmia Bharat for buying 100% of JAL underneath the insolvency decision framework. Alongside Adani and Dalmia, different suitors embody Vedanta Group, Jindal Energy, and PNC Infratech, all of whom have approached CCI to safe clearance for submitting their plans to the Committee of Collectors (CoC).

As per Supreme Court docket directives, CCI’s nod is obligatory earlier than the CoC can vote on any decision plan deemed a mixture underneath the Competitors Act. In a earlier occasion, JAL’s lenders rejected Jaypee Infratech’s proposal to regain management of the diversified group.

Up to now, 5 companies — Adani Enterprises, Dalmia Bharat Cement, Vedanta Group, Jindal Energy, and PNC Infratech — had formally submitted their decision plans for JAL.

Admitted to insolvency on June 3, 2024, by NCLT’s Allahabad Bench, JAL entered CIRP following mortgage defaults. Collectors have raised claims totalling Rs 57,185 crore, with the Nationwide Asset Reconstruction Firm Ltd (NARCL)—which bought JAL’s careworn debt from an SBI-led consortium—rising as the most important claimant.

JAL’s portfolio spans a number of sectors. In actual property, it has landmark initiatives reminiscent of Jaypee Greens in Larger Noida, Wishtown in Noida, and the Jaypee Worldwide Sports activities Metropolis close to Jewar Airport. Its hospitality arm owns 5 lodges throughout Delhi-NCR, Mussoorie, and Agra. It additionally holds three industrial workplace areas within the NCR area.

In cement, JAL has 4 crops in Uttar Pradesh and Madhya Pradesh, together with leased limestone mines in MP, although the crops stay non-operational. The group additionally holds stakes in subsidiaries like Jaiprakash Energy Ventures, Yamuna Expressway Tolling Ltd, and Jaypee Infrastructure Improvement Ltd.

Notably, Jaypee Infratech—one other group firm—was acquired by Mumbai-based Suraksha Group underneath insolvency. Suraksha is at the moment tasked with finishing almost 20,000 stalled housing models in Noida and Larger Noida.