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Vedanta Cries Foul: 'Conspiracy' in JAL Sale
12 Feb
Summary
- Vedanta claims lenders approved Adani's plan after rejecting its higher bid.
- The company alleges a 'commercial conspiracy' to exclude it from the bidding.
- A NCLT hearing is underway to review the lenders' approval of Adani's plan.
Vedanta Ltd. has lodged a challenge with the National Company Law Tribunal (NCLT) in Allahabad, urging a review of lenders' approval for Adani Enterprises Ltd.'s resolution plan for the bankrupt Jaiprakash Associates Ltd (JAL). Vedanta alleges that the approval, made by the committee of creditors (CoC) on November 2025, constitutes a "commercial conspiracy" aimed at unfairly excluding it from the bidding process.
Senior counsel for Vedanta claimed lenders sidelined the company despite it emerging as the highest bidder in earlier rounds, with an offer of ₹12,505 crore on a net present value basis. Vedanta is not demanding to be declared the successful bidder but seeks an examination of the bidding process's adherence to the Insolvency and Bankruptcy Code (IBC).
Vedanta revealed it had submitted an addendum increasing its upfront cash payment and equity infusion two days before lenders voted, but this revised structure was reportedly refused consideration. Lenders, led by State Bank of India, maintain the insolvency process was conducted strictly under the IBC and that Vedanta's arguments lack legal basis, with Adani's plan scoring significantly higher.
Adani's plan secured approximately 93% of financial creditor votes, surpassing the required 66% for approval. National Asset Reconstruction Co. Ltd (NARCL), a major creditor, supported Adani's proposal. The NCLT will now decide whether to uphold the lenders' decision or mandate a reconsideration of the bids.
