Vedanta moves Supreme Court seeking stay on Adani’s takeover of Jaiprakash Associates

Mining billionaire Anil Agarwal’s Vedanta Group has approached the Supreme Court seeking a stay on the proposed takeover of Jaiprakash Associates Ltd (JAL) by Gautam Adani’s Adani Group, escalating its legal challenge against the insolvency resolution process of the debt-laden Jaypee Group flagship.

The move comes even as Agarwal on Sunday publicly claimed that Vedanta had earlier been declared the highest bidder for JAL and had received written confirmation to that effect, only for the decision to be reversed later without explanation.

In a post on social media, Agarwal said the bidding process was “transparent” and that Vedanta was “declared the highest bidder publicly” during the insolvency proceedings. “We were informed in writing that we had won,” he said, adding that the outcome was later changed. He, however, refrained from detailing the reasons, saying the matter would be decided in the appropriate legal forum.


Also read: Anil Agarwal says Vedanta got written win for Jaypee Group asset bid, later reversed

Dispute over bidding outcome and process

JAL, admitted for insolvency in June 2024 after defaulting on loans worth over Rs 57,000 crore, saw competing bids from Vedanta and the Adani Group. Vedanta had offered Rs 16,726 crore, higher than Adani Enterprises’ Rs 14,535 crore bid, according to submissions before the appellate tribunal.

However, the Committee of Creditors (CoC) ultimately approved the Adani bid, which was later cleared by the National Company Law Tribunal (NCLT). Vedanta challenged this before the National Company Law Appellate Tribunal (NCLAT), arguing that its higher bid should have been given precedence.

The NCLAT, in hearings last week, declined to grant an interim stay on the NCLT’s approval of Adani’s resolution plan and has sought responses from the lenders. The matter is scheduled for further hearing in April.

Shares of Vedanta limited were trading at Rs 662.55/- per scrip, up 2% as on Monday at 11:44AM; while Adani Enterprises were down 1.66% at Rs 1792.65/- per scrip.

Vedanta has filed multiple appeals questioning both the validity of the resolution plan and the process followed by the CoC and the adjudicating authority.

Also read: Adani Enterprises gets NCLT nod for JAL takeover

Creditors defend Adani bid despite lower offer

Lenders, however, have defended their decision, maintaining that the insolvency process adhered to all rules under the Insolvency and Bankruptcy Code (IBC). They argued that selection of a resolution plan is not based solely on the highest financial offer but also on factors such as upfront cash, execution feasibility, and payment timelines.

According to the CoC, Adani’s proposal was preferred because it offered around Rs 6,000 crore upfront and a faster repayment schedule within two years, compared to Vedanta’s longer payout horizon extending up to five years.

Creditors also rejected Vedanta’s revised offer, noting that it was submitted after the bidding window had closed and accepting it would have required restarting the entire process.

While refraining from directly criticising the process in detail, meanwhile, Agarwal struck a philosophical note, saying Vedanta had “no attachment” to the asset and would abide by due process. He added that the episode reminded him of past conversations with Jaypee Group founder Jaiprakash Gaur, who had expressed a desire for the group’s assets to be passed on responsibly.

“If it comes, it is God’s grace. If it goes, that is also his wish,” Agarwal said, adding that commitments made in line with “dharma” should not be withdrawn.

JAL holds a diverse portfolio spanning real estate, cement, hospitality, power, and infrastructure, including marquee projects such as Jaypee Greens developments in Noida and Greater Noida, as well as the Jaypee International Sports City near the upcoming Jewar airport.