Upfront money can't be sole criteria to rate plan, Vedanta on Jaiprakash IBC
This story was originally published at 18:59 IST on 22 April 2026
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NEW DELHI – Vedanta Ltd., challenging Adani Enterprises Ltd.'s resolution plan for Jaiprakash Associates, told the National Company Law Appellate Tribunal that upfront payment cannot be treated as the sole or dominant criterion in determining a successful resolution applicant's plan. Adani Enterprises had won the bid to acquire Jaiprakash Associates with a resolution plan offering a superior upfront cash payment, despite a higher total bid from Vedanta. On Wednesday, the appellate tribunal reserved its order on Vedanta's challenge to Adani Enterprises' resolution plan.
Vedanta argued that the entire resolution process suffered from serious non-consideration of material aspects and a lack of transparency. Vedanta said that Adani Enterprises' plan stood at INR 145.35 billion, while the former's offer was INR 179.26 billion. There was a gap of INR 34 billion and it cannot be dismissed as immaterial, said Vedanta. The difference goes directly to the core objective of the Insolvency and Bankruptcy Code, 2016 of value maximisation, said Vedanta.
The role of the National Asset Reconstruction Co. Ltd. also comes under scrutiny, said Vedanta. NARCL, which holds approximately 84% voting share in the committee of creditors of Jaiprakash Associates, and was established to maximise recovery on non-performing assets of public sector banks, had rejected a materially higher value plan raising questions on alignment with its mandate, said Vedanta. Disregard for a few thousand crores by the government-owned lenders is a serious question raised on their fiduciary responsibility to all stakeholders, it said.
On liquidation value, Vedanta said that the committee of creditors had before it two competing plans, one above the liquidation value and one below it, however they chose the latter, despite the availability of a higher-value alternative, said Vedanta. Such an outcome was difficult to align with established insolvency law practice, said the company.
Earlier, the committee of creditors had argued that a possible leak might have prompted Vedanta to revise its bid for Jaiprakash Associates. After the leak, Vedanta had submitted a revised offer, increasing values in net present value and equity infusion, where it had earlier lagged, said the committee.
Adani Enterprises said that the bidding process under the Insolvency and Bankruptcy Code was conducted in a "fair, transparent and structured manner", with equal opportunity provided to all participants. Vedanta had participated in the bidding process with full knowledge of timelines and financial criteria but was now crying foul, seeking to reopen the process by submitting a higher offer after its closure, said Adani Enterprises.
The resolution professional of Jaiprakash Associates had said that Vedanta was never formally declared as the highest bidder for the debt-ridden company. Allowing revision of bids for a resolution plan would violate fairness and level playing field, said the resolution professional. If one applicant was allowed to revise after closure, all applicants would have to be given the same chance, defeating finality of the process, said the resolution officer.
In 2024, the Allahabad bench of the National Company Law Tribunal admitted ICICI Bank's insolvency petition against Jaiprakash Associates under the Insolvency and Bankruptcy Code for debt of INR 12.69 billion. The order was upheld by the National Company Law Appellate Tribunal the same year.
Last year, the committee of creditors of Jaiprakash Associates approved the resolution plan put forth by Adani Enterprises. Entities that had bid to take over Jaiprakash Associates also included Dalmia Bharat Ltd. and Jindal Power Ltd.
Wednesday, shares of Vedanta ended 1.3% down at INR 757.00 on the National Stock Exchange. Shares of Jaiprakash Associates ended 16.5% down at INR 12.95, while those of Adani Enterprises ended 1.6% higher at INR 2,260.80 on the NSE. End
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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