The Competition Commission of India (CCI) has granted in-principle approval to Adani Group’s proposal to acquire debt-ridden Jaiprakash Associates (JAL), subject to the group winning the ongoing insolvency bid.

According to CCI’s statement on August 26, the proposed deal involves Adani Enterprises Ltd (AEL), Adani Infrastructure and Developers Pvt Ltd (AIDPL), or any other Adani entity acquiring up to 100% stake in JAL.

This clearance has become a mandatory step after a Supreme Court ruling that requires companies to secure CCI approval before submitting their resolution plans for creditor voting under the Insolvency and Bankruptcy Code (IBC).

Currently, the Committee of Creditors (CoC) of JAL is reviewing multiple resolution plans, and voting will take place soon. Alongside Adani Group, CCI has also approved Dalmia Bharat’s proposal for JAL. Other interested bidders like Vedanta Group, Jindal Power, and PNC Infratech have approached CCI for similar approvals.

JAL entered corporate insolvency resolution proceedings (CIRP) through a June 3, 2024, order of the National Company Law Tribunal (NCLT), Allahabad Bench, after defaulting on massive loan repayments. Creditors have claimed a staggering Rs 57,185 crore, with the National Asset Reconstruction Company Ltd (NARCL) emerging as the lead claimant after purchasing stressed loans from lenders led by State Bank of India.

JAL’s portfolio includes major real estate and infrastructure assets. These include Jaypee Greens in Greater Noida, Jaypee Greens Wishtown in Noida, and the Jaypee International Sports City near the upcoming Jewar International Airport. It also owns three commercial/industrial office spaces in Delhi-NCR and operates five hotels across Delhi-NCR, Mussoorie, and Agra.

The company has four cement plants across Madhya Pradesh and Uttar Pradesh, along with leased limestone mines in Madhya Pradesh. However, the cement plants remain non-operational. JAL also holds investments in subsidiaries such as Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, and Jaypee Infrastructure Development Ltd, among others.

The Jaypee Group has already lost another key subsidiary, Jaypee Infratech, which Mumbai-based Suraksha Group acquired through an insolvency process. Suraksha Group is now tasked with completing around 20,000 stalled housing units in Noida and Greater Noida.

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