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Vedanta vs. Adani: Insolvency battle heats up
22 Apr
Summary
- Vedanta appeals Adani's winning bid for JAL in insolvency court.
- Vedanta's higher bid was rejected, sparking legal dispute.
- JAL, with ₹57,185 crore debt, has diverse real estate and industrial assets.
The National Company Law Appellate Tribunal (NCLAT) has reserved its decision on Vedanta's challenges against Adani Enterprises acquiring Jaiprakash Associates Ltd (JAL). Vedanta contends that JAL lenders unfairly favored Adani's ₹14,535 crore bid over Vedanta's higher ₹17,926 crore offer during the insolvency process. NCLAT heard arguments from all parties and requested further written submissions.
Vedanta's prior plea for an interim stay was denied by NCLAT on March 24, though the final approval remained subject to appeal outcomes. The Supreme Court also declined a stay but mandated tribunal sanction for major policy decisions by the monitoring committee. Adani Enterprises secured 89% of creditor votes, outbidding Vedanta and Dalmia Bharat.
The Committee of Creditors (CoC) asserted that the bid selection adhered to Insolvency and Bankruptcy Code (IBC) rules, emphasizing that evaluations considered feasibility and execution, not solely the highest bid value. JAL, facing ₹57,185 crore in loan defaults since June 2024, possesses significant assets in real estate, cement, hospitality, and power sectors.
