The Allahabad Bench of the National Company Law Tribunal (NCLT) has cleared Adani Enterprises’ ₹15,000 crore resolution plan for Jaiprakash Associates Ltd (JAL), dismissing objections raised by Vedanta Ltd. The tribunal pronounced its decision in open court, noting that the plan had been approved. A detailed copy of the order is awaited.
With this approval, the resolution plan attains binding effect, paving the way for Adani Enterprises to assume control of the debt-laden company. Payments to creditors will proceed in accordance with the schedule finalised by the monitoring committee, marking the transition from insolvency resolution to implementation.
Vedanta, whose bid had been turned down by lenders, had challenged the process, alleging a lack of transparency and fairness. The company could still pursue an appeal before the National Company Law Appellate Tribunal (NCLAT), which could stall execution of the plan despite the NCLT clearance.
The okayed plan had received about 93 per cent approval from financial creditors, comfortably exceeding the statutory threshold. This backing was driven largely by the National Asset Reconstruction Company Ltd (NARCL), which emerged as the dominant creditor after acquiring a significant portion of the company’s debt from banks. Asset Care and Reconstruction Enterprise, acting on behalf of Yes Bank’s exposure, had voted against the plan.
Adani’s offer was preferred primarily due to its payment structure, which included an upfront payout of about ₹6,000 crore, with the remaining amount to be settled over two years. In contrast, Vedanta’s competing proposal, valued at ₹12,505 crore on a net present value basis, envisaged staggered payments over five years.
Against admitted claims of roughly ₹5.44 trillion, the approved plan yields a recovery of around ₹15,343 crore, translating into a recovery rate of about 2.8 per cent for the creditors.
JAL, which has high-quality assets and business interests spanning real estate, cement manufacturing, hospitality, power, and engineering & construction, entered insolvency proceedings in June 2024 after defaulting on loans exceeding ₹55,000 crore. Subsequently, lenders led by State Bank of India (SBI) transferred debt worth about ₹12,700 crore to NARCL, making it the largest creditor.
JAL’s financial distress can be traced to aggressive expansion funded by heavy borrowing, compounded by the impact of the 2008 global financial crisis and delays in key real estate projects like Wishtown in Noida, which led to mounting grievances from homebuyers.
Several entities within the Jaypee group have already undergone insolvency proceedings. Jaypee Infratech Ltd was taken over by the Suraksha group in 2024, while Bhilai Jaypee Cement entered insolvency in 2025. Other group companies continue to be under various stages of restructuring.
JAL has major real estate projects like Jaypee Greens in Greater Noida, Wishtown, part of Jaypee Greens, in Noida (both on the outskirts of the national capital), and the Jaypee International Sports City, strategically located near the upcoming Jewar International Airport.
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