Adani Group has secured the Competition Commission of India’s (CCI) go-ahead to acquire debt-ridden Jaiprakash Associates Ltd (JAL), marking a key step in what could become one of the largest insolvency resolutions in the real estate and infrastructure sector.

The approval, announced on August 26, comes as Adani and several other bidders, including Dalmia Bharat, Vedanta Group, Jindal Power, and PNC Infratech, line up to take over the beleaguered Jaypee Group flagship, which owes creditors over ₹57,000 crore.

The nod from the fair-trade regulator is crucial following a recent Supreme Court ruling mandating that any resolution applicant under the Insolvency and Bankruptcy Code (IBC) must obtain competition clearance before their plan is placed for voting before the Committee of Creditors (CoC).

While the CoC of JAL is yet to finalise its decision, Adani’s entry into the fray underscores the high-stakes battle for control of JAL’s vast portfolio of real estate, hospitality, cement, and infrastructure assets spread across the Delhi-NCR and central India.

The CoC of Jaiprakash Associates Ltd (JAL) is still reviewing the resolution plans received, and the voting will happen in due course. Apart from Adani Group, Dalmia Bharat’s for JAL has been cleared by the regulator.

Various other companies, including Vedanta Group, Jindal Power and PNC Infratech, have also approached the CCI seeking nod to submit respective resolution plans to the CoC of JAL.

JAL was admitted into the corporate insolvency resolution process (CIRP) through the National Company Law Tribunal, Allahabad Bench, order dated June 3, 2024. It was taken to insolvency proceedings after the conglomerate defaulted on the payment of loans.

Creditors are claiming a staggering ₹57,185 crore.

The National Asset Reconstruction Company Ltd (NARCL) leads the list of claimants after acquiring the stressed JAL loans from a consortium of lenders headed by the State Bank of India.

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, strategically 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. The cement plants, however, are non-operational. It also has investments in subsidiaries, including Jaiprakash Power Ventures Ltd,

Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and several other companies.

Jaypee Group’s Jaypee Infratech has already been acquired by Mumbai-based Suraksha Group through an insolvency process.