Vedanta challenges Adani's ₹14,500cr Jaiprakash Associates takeover in NCLAT
What's the story
Vedanta has challenged the approval of Adani Enterprises's ₹14,543 crore bid for bankrupt Jaiprakash Associates Limited (JAL). The mining giant has appealed against the National Company Law Tribunal's (NCLT) March 17 order that approved the Gautam Adani-led company's plan while rejecting Vedanta's challenge. The matter is likely to be heard tomorrow by a bench led by NCLAT Chairperson Justice Ashok Bhushan.
Dispute
Vedanta calls approval a 'commercial conspiracy'
Vedanta has called the approval a "commercial conspiracy" and sought a reconsideration of its bid. The firm contends that lenders violated the principle of maximizing value via a fair process under the Insolvency and Bankruptcy Code (IBC). Despite being the highest bidder with an offer of ₹12,505.85 crore on a net present value (NPV) basis, Vedanta claims its proposal was not given due consideration by lenders who favored Adani's plan instead.
Offer details
Revised offer highlighted by Vedanta
Vedanta also highlighted a revised offer made on November 8, 2025, which included an upfront cash of around ₹6,563 crore and equity infusion to ₹800 crore. The firm argued this would have led to better recovery and should have been considered. However, the committee of creditors (CoC) defended their decision by saying plans were evaluated on multiple factors such as feasibility and execution, not just headline value.
Payment terms
Why lenders preferred Adani's bid
Adani's bid was preferred as it offered roughly ₹6,000 crore upfront and also faster payments within two years. This was in contrast to Vedanta's longer payment timeline of up to five years. The lenders also rejected Vedanta's revised offer since it was submitted after the bidding had closed, which would require restarting the process if accepted.
Tribunal ruling
NCLT ruling on lenders' decision
The NCLT upheld the lenders' decision, stating that the CoC's commercial wisdom is final and cannot be interfered with unless there is a clear legal violation. It also ruled that Vedanta had no right to be selected just for being the highest bidder. Adani's plan secured about 93.8% of the voting share from financial creditors, well above the needed threshold, with National Asset Reconstruction Co. Ltd (NARCL), playing a key role in backing it.