CCI approves acquisition of Jaiprakash Associates by Adani Group.
The Competition Commission of India (CCI) on Tuesday approved the acquisition of Jaiprakash Associates by Adani Entities.
In an official statement, the CCI said that the deal proposes acquisition of up to 100 per cent shareholding of JAL by Adani Enterprises (AEL), Adani Infrastructure and Developers (AIDPL), or any other entity part of the Adani Group.
According to the press release, the CCI noted that JAL is undergoing corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC), 2016, on the directions of the National Company Law Tribunal (NCLT), Allahabad Bench.
In June 2024, JAL was admitted into the CIRP through the NCLT's Allahabad Bench. It had taken to insolvency proceedings after the conglomerate defaulted on the payment of loans. Creditors are claiming Rs 57,185 crore, as per a PTI report.
The top claimant is the National Asset Reconstruction Company (NARCL), after it acquired the stressed JAL loans from a consortium of lenders headed by the State Bank of India (SBI).
Multiple interests in JAL
On August 5, the CCI had Dalmia Bharat's proposal to acquire 100 per cent of JAL. Besides the two companies, many others had also shown their interest to acquire the debt-ridden company, which operates major real estate projects like Jaypee Greens in Greater Noida, a part of Jaypee Greens Wishtown in Noida and the Jaypee International Sports City, strategically located near the upcoming Jewar International Airport.
It also has three commercial/industrial office spaces in Delhi-NCR, while its hotel division has five properties in Delhi-NCR, Mussoorie, and Agra.
JAL has four cement plants in Madhya Pradesh and Uttar Pradesh, and a few leased limestone mines in Madhya Pradesh. The cement plants, however, are non-operational. It also has investments in subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and several other companies.
Jaypee Group's Jaypee Infratech has already been acquired by Mumbai-based Suraksha Group through an insolvency process. Vedanta Group, who had each also submitted their own proposals to the CCI, seek its nod for submission of their respective resolution plan to the lender's body Committee of Creditors (CoC).
According to mandates by the Supreme Court, CCI's approval is required before the CoC can vote on any resolution plan that qualifies as a combination under the Competition Act.
The CoC of Jaiprakash Associates Ltd (JAL) is still reviewing the resolution plans received, and the voting will happen in due course.
