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Vedanta Ltd has approached the Supreme Court against Adani Group's INR 14,535 crore bid for Jaiprakash Associates under the insolvency process. The move follows the appellate tribunal's refusal to stay the deal. Vedanta has argued that its higher bid was not considered fairly. Meanwhile, Adani Enterprises Ltd has filed a caveat to ensure it is heard before any order is passed. The case adds complexity to one of India's large ongoing insolvency resolutions involving real estate and infrastructure assets.
Vedanta Ltd has moved the Supreme Court seeking relief against the approved resolution plan under which Adani Group is set to acquire Jaiprakash Associates Ltd for INR 14,535 crore. The petition comes after the National Company Law Appellate Tribunal (NCLAT) refused to grant an interim stay on the implementation of the deal. Advertisement
The appellate tribunal had allowed the resolution process to move ahead but clarified that the final outcome would remain subject to pending appeals. With this, the transaction process has continued while legal challenges are being heard.
Adani Enterprises Ltd has filed a caveat in the Supreme Court, stating that it should be heard before any decision is taken. This step is typically taken to avoid any ex-parte orders and shows that the company is preparing to defend the approved bid.
Vedanta, which participated in the bidding process, has contested the approval granted by lenders and the tribunal. The company has stated that its offer of around INR 16,726 crore was higher than Adani's approved bid. It has raised concerns that the evaluation process did not give due weight to the overall value of its proposal.
The Committee of Creditors (CoC), however, had approved Adani's plan based on a combination of factors. These included higher upfront cash recovery, clarity in execution, and timelines for repayment. Lenders generally consider these factors important in insolvency cases where recovery certainty is critical.
Jaiprakash Associates entered insolvency after defaulting on loans of over INR 57,000 crore, making it one of the large stressed asset cases in India. The company has significant real estate exposure, including a land bank of around 4,000 acres in Noida, Greater Noida and along the Yamuna Expressway. It is also linked to projects such as Jaypee Greens and the Jaypee International Sports City, which have seen delays over the years.
The matter has been moving through multiple legal stages, starting from the NCLT approval to appeals before NCLAT. The next hearing in the ongoing proceedings is scheduled for April 10, where further clarity is expected on the challenges raised.
At the core of the dispute is whether the insolvency process was conducted in a fair manner and whether the highest financial bid should have been given priority over other commercial considerations. The Supreme Court's decision will be important in determining how such cases are evaluated going forward.
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