New Delhi, March 29 – Anil Agarwal, a major mining figure, stated on Sunday that Vedanta had received written confirmation that it had won a bid for a Jaypee Group asset, but the decision was subsequently reversed, without providing details.
In a social media post, Agarwal said that Vedanta was "formally declared the highest bidder" to acquire Jaiprakash Associates Ltd (JAL) through the insolvency process.
Attaching a media report about the lenders of the insolvent real estate company's price opening meeting on September 5, Agarwal said, "This was a transparent process. We were informed in writing that we had won."
"However, things are rarely that simple. After some time, the decision was changed," he added.
Gautam Adani's group was the only other bidder for JAL, the flagship company of the Jaypee Group.
The Committee of Creditors (CoC) of JAL evaluated the rival bids and subsequently approached the insolvency court, NCLT, for approval of the Adani bid.
The NCLT's Allahabad bench approved the bid, against which Agarwal's Vedanta group has filed an appeal before the appellate body, NCLAT.
The National Company Law Appellate Tribunal (NCLAT), in its second hearing last week, did not stay the NCLT's decision approving Adani's bid for JAL.
Agarwal stated that he did not want to go into the details of the reversal of his group's winning bid. "That is for the appropriate forum to decide."
Agarwal said the episode brought back memories of his interactions with Jaiprakash Gaur, the founder of the Jaypee Group, who had previously expressed a desire that the group's assets be passed on to "trustworthy hands" and carried forward with the right intentions.
"We have no attachment to this asset. If it comes, it is a blessing. If it goes, that is also his wish," he said, adding that commitments made in line with "dharma" should not be taken back.
He said that Vedanta would present facts through appropriate channels and follow due process, drawing on teachings from the Bhagavad Gita.
JAL, which has high-quality assets and business interests spanning real estate, cement manufacturing, hospitality, power, and engineering & construction, was admitted to insolvency in June 2024 after it defaulted on loans totaling Rs 57,185 crore.
In November last year, the CoC approved the resolution plan by business tycoon Adani to acquire JAL.
Adani Enterprises secured the maximum 89 per cent votes from creditors, followed by Dalmia Cement (Bharat) and the Vedanta Group.
The CoC, however, defended its decision, saying the process complied with all insolvency and the Bankruptcy Code (IBC) rules. They maintained that no bidder has a guaranteed right to win, even if it offers the highest value.
They said that plans were evaluated on multiple factors, including upfront cash, feasibility, and execution, not just headline value.
Adani's bid was preferred as it offered around Rs 6,000 crore upfront and faster payments within two years, compared to Vedanta's longer payment timeline of up to five years.
Lenders also rejected Vedanta's revised offer, saying it was submitted after the bidding process closed and accepting it would require restarting the process. They added that all bidders were given equal opportunity and multiple chances to improve their bids.
Earlier this month, on March 17, the NCLT approved Adani Enterprises Ltd's Rs 14,535 crore bid to acquire JAL through the insolvency process.
This was challenged by Vedanta before the NCLAT.
On March 24, the NCLAT declined to issue any interim stay over the Vedanta Group's plea against the order passed by the NCLT approving the bid by the Adani Group to acquire JAL.
The NCLAT two-member bench sought a response from the CoC of JAL within a week. It listed the matter for the next hearing on April 10.
The Vedanta group has filed two appeals before the NCLAT. In the first one, it has challenged the validity of the resolution plan, and in the second one, it has challenged the approval of the plan by the CoC and the adjudicating authority (NCLT).
During the proceedings of the NCLAT on March 24, counsel representing Vedanta contended that it was declared the highest bidder by JAL's Committee of Creditors. Vedanta's bid value was Rs 16,726 crores, and Adani Enterprises' bid was Rs 14,535 crore.
The CoC's discretion in the selection of a resolution plan must be exercised only in line with the applicable law and the governing documents, Vedanta's counsel contended before the NCLAT.
Jaypee Group firm JAL has major real estate projects like Jaypee Greens in Greater Noida, a part of Jaypee Greens Wishtown in Noida (both on the outskirts of the national capital), and the Jaypee International Sports City, located near the upcoming Jewar International Airport.
It also has three commercial/industrial office spaces in Delhi-NCR, while its hotel division has five properties in Delhi-NCR, Mussoorie, and Agra.
JAL has four cement plants in Madhya Pradesh and Uttar Pradesh, and a few leased limestone mines in Madhya Pradesh.
It also has investments in subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and several other companies.