Vedanta Fails: Adani's Plan for Jaiprakash Associates Approved by NCLAT
NCLAT upholds Adani's resolution plan for JAL, dismissing Vedanta's appeal.
Top Summary
- What happened: The NCLAT dismissed Vedanta's appeal, affirming the approval of Adani's resolution plan for the debt-ridden Jaiprakash Associates Limited (JAL).
- Why it matters: This decision finalizes the resolution process for JAL, resolving a significant debt issue and impacting creditor recoveries.
- What changes for people: The implementation of Adani's resolution plan will proceed, potentially affecting JAL's operations and its stakeholders.
- Who is affected: Jaiprakash Associates' creditors, including NARCL, homebuyers, Adani Enterprises, Vedanta, and other bidders are affected by this ruling.
NCLAT Rejects Vedanta's Plea
The National Company Law Appellate Tribunal (NCLAT) has dismissed Vedanta Limited's appeal against the acceptance of Adani's resolution plan for Jaiprakash Associates Limited (JAL).
A Bench comprising Chairperson Justice (retired) Ashok Bhushan and Technical Member Barun Mitra delivered the verdict on Monday. They affirmed that the Committee of Creditors (CoC) acted correctly in rejecting Vedanta's resolution plan.
Background of the Insolvency
Jaiprakash Associates Limited (JAL) entered corporate insolvency resolution on June 3, 2024, following a petition by ICICI Bank to the Allahabad Bench of the NCLT.
The company faced admitted claims exceeding ₹57,000 crore. The National Asset Reconstruction Company Limited (NARCL) was the largest financial creditor, holding over 85 per cent voting share in the CoC.
The Bidding Process
The CoC consisted of 27 members, including banks, financial institutions, and a class of homebuyers.
Initially, 28 expressions of interest were received, with 25 prospective resolution applicants shortlisted. Ultimately, six bidders submitted resolution plans:
- Adani Enterprises Limited
- Vedanta Limited
- Dalmia Cement (Bharat) Limited
- Jindal Power Limited
- PNC Infratech Private Limited
- Jaypee Infratech Limited
Adani Enterprises and Vedanta emerged as the leading contenders.
Adani's Plan Approved
Following an independent evaluation, Adani's plan was ranked higher, particularly regarding upfront recovery and overall financial value.
In its 23rd meeting held in November 2025, the CoC approved Adani Enterprises' resolution plan with a 93.81 per cent voting share.
Vedanta's Challenge and Revised Offer
Vedanta submitted an addendum to its resolution plan on November 8, 2025, after the challenge process concluded.
The CoC declined to consider it, citing the bidding framework which prohibited post-process modifications of financial proposals. Vedanta challenged this decision, alleging a lack of transparency.
Vedanta contended that its revised offer, pegged at ₹16,070 crore, provided greater value to creditors. The CoC maintained that the addendum was submitted after Vedanta knew its upfront offer was lower.
Legal Battles and Supreme Court's Directive
In March 2025, the NCLAT refused to halt the implementation of Adani's resolution plan. Vedanta then approached the Supreme Court.
The Supreme Court dismissed Vedanta's plea but introduced a safeguard. It directed that any major policy decision by the monitoring committee or those implementing the plan require prior leave of the NCLAT. It also instructed NCLAT to hear the case expeditiously.
Vedanta was represented by Senior Advocate Abhijeet Sinha and a team of lawyers. The Resolution Professional was represented by Senior Advocates Abhishek Manu Singhvi and Arun Kathpalia with a team from Shardul Amarchand Mangaldas (SAM).
"The CoC's decision to reject Vedanta's addendum was justified based on the established bidding framework."
What to Watch Next
The implementation of Adani's resolution plan will now proceed. Monitor for any major policy decisions by the monitoring committee that would require NCLAT approval, as per the Supreme Court's directive.