NCLT approves Adani’s ₹15,000-crore plan for bankrupt Jaiprakash Associates

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

“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.

After NCLT approval, the resolution plan becomes binding, and control shifts to Adani Enterprises, with payments to creditors beginning as per the timeline set by the monitoring committee. The company then moves towards implementation and eventual exit from insolvency.

Adani Enterprises informed the stock exchanges that the deal may be implemented by the company, its promoters or other Adani group entities, either directly or through a special purpose vehicle.

However, dissenting parties such as Vedanta can challenge the order before the National Company Law Appellate Tribunal (NCLAT). If the appellate tribunal admits the plea and grants a stay of the NCLT order, the plan’s implementation may still face delays despite approval.

The hearing follows a challenge by Anil Agarwal-led Vedanta Ltd, whose bid was rejected by lenders. Vedanta has alleged the process was unfair and opaque, calling it a “commercial conspiracy”.

According to lawyers, an approved resolution plan is intended to bring closure but remains open to challenge on limited legal 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.

Chitale further noted that an appeal does not automatically stop the implementation of an approved resolution plan. Any stay must be specifically granted by the appellate tribunal, which does so cautiously and only in limited cases. If no stay is granted, the plan can continue to be implemented even while the appeal is pending.

The plan formalizes Adani Enterprises’ takeover of JAL and moves the long-running insolvency case closer to closure.

Adani’s resolution plan, submitted in November, secured about 93% votes from financial creditors, well above the 66% required under the Insolvency and Bankruptcy Code. The support was led by National Asset Reconstruction Co. Ltd (NARCL), which has 85.43% voting power after acquiring debt from banks. Asset Care and Reconstruction Enterprise, representing Yes Bank’s exposure, voted against the plan.

Adani’s bid was favoured for its payment structure, offering around ₹6,000 crore upfront and the rest 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, implying a recovery of about 2.8% for creditors.

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

The acquisition will support the Adani Group’s cement expansion. JAL’s assets, including the Shahabad grinding unit and the Chunar cement plant, along with limestone mines, will help boost capacity and secure raw materials.

Adani Group arm, Ambuja Cements, plans to expand production from the current 109 million tonnes per annum to 155 million tonnes by FY28.

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

JAL 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.

The company’s troubles stem from heavy borrowing for expansion, worsened by the 2008 global financial crisis and by delays in projects like Wish Town, which triggered homebuyer complaints.

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