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NCLT Clears Rs 15,000 Crore Adani Resolution Plan For Jaiprakash Associates

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The National Company Law Tribunal (NCLT), Allahabad, has approved Adani Enterprises’ over ₹15,000-crore resolution plan for bankrupt Jaiprakash Associates Ltd (JAL), dismissing a challenge by Vedanta Ltd.

“Resolution plan is approved as per the details in the order,” the NCLT bench said while pronouncing the verdict. A detailed written order was not available till press time.

Control To Shift To Adani Enterprises

With the approval, the resolution plan becomes binding, paving the way for control of JAL to shift to Adani Enterprises. Payments to creditors will begin as per timelines set by the monitoring committee, followed by implementation and eventual exit from insolvency.

Adani Enterprises informed stock exchanges that the deal may be executed directly or through its promoters, group entities, or a special purpose vehicle.

Scope For Appeal Remains

Dissenting parties, including Vedanta, can challenge the order before the National Company Law Appellate Tribunal (NCLAT). If the appellate tribunal admits the plea and grants a stay, implementation could face delays.

Vedanta, led by Anil Agarwal, had alleged the process was unfair and opaque, calling it a “commercial conspiracy”.

Legal experts noted that while an approved resolution plan aims to bring closure, appeals are limited to specific grounds.

“Appeals under Section 61 of the Insolvency and Bankruptcy Code are typically confined to issues such as legal non-compliance, material irregularity in the process, or ineligibility of the resolution applicant. Courts generally do not interfere with the commercial decisions of the committee of creditors,” said Madhav Chitale, partner at Chitale & Chitale Partners.

He added that an appeal does not automatically halt implementation unless a stay is explicitly granted.

Strong Creditor Backing For Adani Bid

Adani’s resolution plan, submitted in November, secured about 93% votes from financial creditors, well above the 66% threshold under the Insolvency and Bankruptcy Code.

Support was led by National Asset Reconstruction Co. Ltd (NARCL), which holds 85.43% voting power after acquiring debt from banks. Asset Care and Reconstruction Enterprise, representing Yes Bank exposure, voted against the plan.

Payment Structure And Recovery

Adani’s bid was favoured for its payment structure, offering around ₹6,000 crore upfront, with the remaining amount to be paid within two years.

In comparison, Vedanta’s ₹12,505-crore offer, on a net present value basis, proposed payments over five years.

Against total admitted claims of ₹5.44 trillion, Adani’s plan offers a realizable value of ₹15,343 crore, translating to a recovery of about 2.8% for creditors.

Key Assets To Transfer

The plan grants Adani access to JAL’s major assets, including nearly 3,985 acres in Noida and Greater Noida, cement capacity of 6.5 million tonnes across Uttar Pradesh and Madhya Pradesh, and a 24% stake in Jaiprakash Power Ventures Ltd.

The acquisition will support the group’s cement expansion, with assets such as the Shahabad grinding unit, the Chunar cement plant, and limestone mines aiding capacity growth and raw material security.

Adani Group firm Ambuja Cements plans to scale production from 109 million tonnes per annum to 155 million tonnes by FY28.

Real Estate Portfolio And Insolvency Background

JAL also holds significant real estate assets, including Jaypee Greens in Greater Noida, Wishtown in Noida, and the Jaypee International Sports City near the upcoming Jewar airport, along with hotels across the National Capital Region, Mussoorie and Agra.

The company was admitted to insolvency in June 2024 after defaulting on loans exceeding ₹55,000 crore. Lenders led by the State Bank of India later transferred about ₹12,700 crore of debt to NARCL, making it the largest creditor.

JAL’s financial stress was driven by heavy borrowing for expansion, compounded by the 2008 global financial crisis and project delays such as Wish Town, which led to homebuyer complaints.

Several Jaypee Group entities have already undergone insolvency proceedings. Jaypee Infratech Ltd was acquired by the Suraksha Group in 2024, while Bhilai Jaypee Cement entered insolvency in 2025. Other entities remain under restructuring.

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