Jaiprakash Gaur backs Adani takeover of JAL, expresses confidence in leadership

Jaiprakash Associates Ltd (JAL) founder Jaiprakash Gaur has expressed confidence in the Adani Group taking over the debt-laden company, following its selection as the successful resolution applicant under the insolvency process.

In a public statement, Gaur acknowledged the challenges faced by the company and its stakeholders during the Corporate Insolvency Resolution Process (CIRP). “The recent financial challenges that led to the Corporate Insolvency Resolution Process have been difficult for all stakeholders. Throughout this period, we have worked with sincerity and commitment alongside homebuyers, employees, lenders, and partners to enable a fair and credible resolution,” he said.

He also highlighted the conduct of the process and participation of bidders. “I appreciate the fair and transparent process conducted by the Committee of Creditors and the Resolution Professional, and I thank both the Adani Group and the Vedanta Group for their participation and interest,” Gaur added.

Confirming the outcome of the bidding process, Gaur said, “The Committee of Creditors has selected the Adani Group as the successful Resolution Applicant, and we fully respect this decision.”

Reflecting on the company’s journey, he described Jaiprakash Associates as “a lifelong journey of conviction, perseverance, and nation-building,” underscoring the legacy built since its inception in 1979.

Expressing confidence in the incoming promoter group, Gaur said, “I have every confidence that under the leadership of Shri Gautam Adani, the legacy of Jaiprakash Associates will be carried forward with renewed energy, responsibility, and purpose, ensuring that the aspirations of all stakeholders are fulfilled.”

He added, “I extend my heartfelt wishes to the Adani Group as they take this journey forward.”

Case background

Adani Enterprises emerged as the winning bidder for JAL, outpacing Vedanta and Dalmia Bharat in the resolution process. The company secured the highest support from creditors with nearly 89% of the votes, ahead of Dalmia Cement (Bharat) and Vedanta Group. Its proposal was favoured due to an upfront payment of around ₹6,000 crore and a faster repayment schedule of about two years, compared to Vedanta’s extended timeline of up to five years.

On Monday, the Supreme Court declined to stay the implementation of Adani Enterprises’ ₹14,500-crore resolution plan for JAL, allowing the insolvency process to move ahead.

A bench led by Chief Justice of India Surya Kant observed that the matter is already listed for final hearing before the National Company Law Appellate Tribunal (NCLAT) on April 10. “In view of the fact that company appeals are now listed for final hearing before NCLAT on April 10, we see no reason to interfere,” the bench, also comprising Justice Joymalya Bagchi, said. The court directed the appellate tribunal to take up the matter on an out-of-turn basis and continue hearings, if required, on the next working day.

The apex court also ruled that any major policy decision by the monitoring committee in the interim would require prior approval from the NCLAT, given the significance of the case.

Vedanta Group had approached the Supreme Court seeking a stay on Adani’s resolution plan, alleging lack of transparency and failure to maximise value for creditors. The company argued that it had submitted a higher bid of ₹16,726 crore and was initially declared the highest bidder before the outcome was reversed.

However, lenders defended the process, stating that resolution plans are assessed on multiple parameters beyond headline value, including upfront cash, feasibility, and repayment timelines. They noted that Adani’s proposal included around ₹6,000 crore upfront and a shorter repayment period of about two years. Lenders also pointed out that Vedanta’s revised bid came after the deadline and could not be considered without restarting the process.

Earlier, the NCLAT had refused to grant interim relief against the National Company Law Tribunal’s approval of Adani’s plan. JAL, which has defaulted on loans exceeding ₹57,000 crore, is currently undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016.