Vedanta Moves Supreme Court, Challenges Adani’s ₹14,543 Crore Takeover of Jaiprakash Associates

Vedanta Moves Supreme Court, Challenges Adani’s ₹14,543 Crore Takeover of Jaiprakash Associates​

Legal Battle Escalates After NCLT and NCLAT Setbacks​

NEW DELHI: Vedanta Ltd, led by billionaire Anil Agarwal, has taken its legal dispute with the Adani Group over the takeover of Jaiprakash Associates Ltd (JAL) to the Supreme Court. The company is challenging the approval of Adani Enterprises Ltd’s ₹14,543 crore resolution plan after failing to secure relief from the National Company Law Appellate Tribunal (NCLAT).

Vedanta filed its plea on 25 March, naming JAL’s resolution professional, Bhuvan Madan, as a respondent. The move follows unsuccessful challenges at the National Company Law Tribunal (NCLT) and the NCLAT, where interim relief was denied and the implementation of Adani’s plan was allowed to proceed.

Allegations of Procedural Unfairness​

Vedanta, the losing bidder in the insolvency process, claims that its higher offer was ignored and that the bidding process lacked transparency and fairness. The company has asserted that its proposal, submitted on a net present value (NPV) basis, was worth ₹12,505.85 crore—about ₹3,400 crore higher in total value than Adani’s plan and ₹500 crore higher in NPV.

The company also noted procedural irregularities, stating it was not provided reasons for rejection or an opportunity to clarify its proposal. Vedanta’s improved offer, submitted on 8 November 2025, included ₹6,563 crore in upfront cash and ₹800 crore in equity infusion, which it argued would have ensured better recovery for creditors.

Lenders’ Defense and Resolution Plan Details​

The Committee of Creditors (CoC) defended its decision, noting that resolution plans are evaluated on multiple factors including upfront cash recovery, feasibility, viability, and execution capability—not solely on headline value or NPV. Adani’s plan offered around ₹6,000 crore upfront with a faster payment timeline of two years, compared with Vedanta’s plan, which spread payments over five years.

The NCLT, in its 17 March order, upheld the lenders’ decision, stating that the commercial wisdom of the CoC cannot be interfered with unless there is a clear legal violation. Adani’s resolution plan secured approximately 93.8% of the financial creditors’ voting share, with National Asset Reconstruction Co. Ltd (NARCL) playing a key role in backing the bid.

The total value of Adani Enterprises’ bid, including ₹800 crore for capital expenditure and working capital, stands at around ₹15,343 crore. Against admitted claims of about ₹60,637 crore, this translates into an estimated recovery of 24% for creditors.

Strategic Importance of Jaiprakash Associates​

Jaiprakash Associates holds nearly 4,000 acres of land across Noida, Greater Noida, and the Yamuna Expressway, along with marquee projects such as Jaypee Greens and Jaypee International Sports City near the upcoming Noida International Airport. The company also owns hotels, commercial assets, and cement capacity of approximately 6.5 million tonnes, making it a highly attractive target for infrastructure-focused groups.

Vedanta chairman Anil Agarwal, in a post on X, confirmed the company’s intent to pursue legal remedies, emphasizing that the auction was conducted under the Insolvency and Bankruptcy Code (IBC) but several bidders dropped out before Vedanta placed the highest bid.

The Supreme Court hearing is expected to focus on both the refusal to stay the plan’s implementation and broader concerns regarding the fairness and transparency of the bidding process.