Purvah Green pulls the plug on Rs 5,750-cr GVK Energy resolution

Mumbai: Purvah Green, an RP Sanjiv Goenka Group company, has withdrawn its ₹5,750 crore resolution plan to acquire GVK Energy, citing uncertainties arising from the Gulf war, said people aware of the matter.

The Adani Group had submitted the second-highest offer of ₹5,725 crore, they said.

With the conflict having disrupted several industries due to fuel supplies getting squeezed, the decision by the Sanjiv Goenka Group appears to be part of a broader effort to rationalise costs and reshape its investment strategy, the people said.


Purvah, which had submitted the highest offer, informed lenders and resolution professional (RP) Venkata Chalam Varanasi late last week that it had "decided to pause" and would like to "withdraw our resolution plan," according to the note, which ET has seen.

GVK Energy, part of the GVK Group, is the holding company of Alaknanda Hydro Power Co, which operates the 330 MW Shrinagar hydroelectric project in Uttarakhand. The hydropower company, which is the key asset that drew investor interest, also has a power purchase agreement with the Uttar Pradesh government.

Purvah Green and Adani Group did not respond to queries.

The Sanjiv Goenka Group unit had submitted its plans in the last week of November 2025. These were updated on March 4, a few days after the West Asia conflict started.

The company said it is rethinking its investment strategy.

"As we are aware that the geopolitical situation is not conducive to the industry as a whole and large organisations are planning their future course of actions, altering their strategic goals and preparing for robust cost rationalisations," Purvah said in the note. "With the ongoing West Asia conflict creating significant uncertainty, impacting global investor sentiments, we are in the process of reshaping our investment strategy."

Against this backdrop, the company has chosen to take a pause.

"In the event of such evolving geopolitical conditions and changing industry dynamics, after careful consideration and detailed deliberations, we have decided to pause our involvement in the process and would like to withdraw our resolution plan," it said. The company asked the RP not to place the plan before the committee of creditors for voting and sought a refund of the ₹20 crore earnest money deposit.

GVK Energy was admitted for corporate insolvency in May 2025.

The resolution professional has admitted claims totalling Rs 14,281 crore, including Rs 12,912 crore from unsecured creditors, Rs 1,351 crore from secured creditors, and the balance from operational creditors.

IDBI Bank, the largest lender with a verified claim of Rs 1,708 crore did not respond to ET’s queries. The RP said he is not in a position to comment on speculative or unverified information.