Vedanta chief Anil Agarwal claims Jaypee asset bid reversal after written confirmation; analysts question rationale

Mining baron Anil Agarwal on Sunday claimed that Vedanta had received written confirmation that it had won a bid for a Jaypee Group asset, but the decision was subsequently reversed, without elaborating on the reasons.

In a social media post, Agarwal said Vedanta was "declared the highest bidder publicly" to acquire Jaiprakash Associates Ltd (JAL) through the insolvency process.

Attaching a source-based media report about the price opening meeting of lenders of the insolvent infrastructure company on September 5, Agarwal said, "It was a transparent process. We were informed in writing that we had won.

"But life is never so simple. After some days, the decision was changed," he said.

Billionaire Gautam Adani's group was the only other bidder for JAL.

The Committee of Creditors (CoC) of the JAL evaluated the rival bids and subsequently went to National Company Law Tribunal (NCLT) for approval of the Adani bid.

NCLT's Allahabad bench on March 17 approved the Adani Enterprises Rs 14,535 crore bid to acquire JAL, against which the Vedanta group has approached the appellate body, NCLAT.

The National Company Law Appellate Tribunal (NCLAT) in a hearing last week did not stay NCLT's decision approving Adani's bid.

Agarwal said he did not want to go into the details of the reversal of his group's winning bid.

"That is for the right forum" to decide, he added.

Lenders involved in the insolvency process disputed the suggestion that Vedanta had secured the deal.

"Vedanta was never declared the winning bidder. Any claim to that effect is incorrect," said one person directly involved in the resolution, asking not to be named, discussing a confidential process.

According to creditors, the decision was not based solely on headline numbers.

While Vedanta's proposal carried a marginally higher net present value, lenders raised concerns around the payment structure, execution certainty and conditionality, the person said.

"The resolution process under IBC is ultimately driven by a structured framework focused on value maximisation for creditors. While interim outcomes during the bidding process may vary, the final decision rests with the CoC through a defined evaluation matrix and voting process," said analysts with Incred Equities in their latest report.

"In this case, the resolution plan approved with 93.8 per cent CoC vote and subsequent NCLT approval reflects that final commercial decision. In that context, outcomes are determined by the prescribed process and lender consensus, rather than individual sentiments around the asset," it added.

"A higher number does not automatically translate into a winning bid, especially in a time-bound insolvency process." Adani has offered over Rs 6,000 crore upfront payment, while Vedanta, in its bid, offered only Rs 2,000 crore.

Experts also point to Vedanta's track record in past insolvency cases as a factor weighing on confidence.

In 2018, Vedanta emerged as the highest bidder for GMR Chhattisgarh Energy with a bid of about Rs 2,500 crore but later exited the transaction.

The same year, the group withdrew from the Ind-Barath Energy (Utkal) deal after receiving approval from the NCLT, leading to legal disputes.

In another case, Vedanta's acquisition of Meenakshi Energy faced prolonged litigation and delays, with the transaction eventually closing in 2023 after several revisions.

By contrast, creditors say the rival Adani's proposal for JAL offered faster recovery and greater certainty.

"Even if the other bid is marginally lower, it provides upfront cash and a quicker exit for lenders who have been stuck with these assets for years," said another person familiar with the matter.

Despite marginally lower, Adani's deal is much better on paper; it's a win-win for all stakeholders, including lenders, who have been sitting on JAL assets for far too long and are looking for an early exit.

Vedanta's proposal envisaged staggered payments spread over 5-6 years, with limited upfront commitment, according to people involved in the evaluation.

That structure, lenders said, reduced confidence in timely recovery.

The Jaypee case is among India's largest and most closely watched insolvency resolutions, with lenders prioritising certainty, speed and enforceability as much as headline value.

In his social media post, Vedanta Chief Agarwal said the episode brought back memories of his interactions with Japyee group founder Jaiprakash Gaur, who had earlier expressed a desire that the group's assets be passed on to "safe hands" and carried forward with the right intent.

"We have no attachment to this asset. If it comes, it is God's grace. If it goes, that is also his wish," he said, adding that commitments made in line with "dharma" should not be taken back.

He said Vedanta would present facts through appropriate channels and follow due process, drawing on teachings from the Bhagavad Gita.

JAL, which has high-quality assets and business interests spanning real estate, cement manufacturing, hospitality, power and engineering & construction, was admitted to insolvency in June 2024 after it defaulted on payments of loans aggregating Rs 57,185 crore.

In November last year, the CoC approved the resolution plan by business tycoon Gautam Adani to acquire JAL.

Adani Enterprises got the maximum, around 90 per cent, of the votes from creditors, followed by Dalmia Cement (Bharat) and Vedanta Group.

On March 24, the NCLAT declined any interim stay over the Vedanta Group's plea against the order passed by the NCLT approving Adani Group's bid to acquire JAL.

The NCLAT two-member bench sought a response from the CoC of JAL within a week. It also directed to list the matter on April 10 for the next hearing.

The Vedanta group has filed two appeals before the NCLAT. In the first one, it has challenged the validity of the resolution plan, and in the second one, it has challenged the approval of the plan by the CoC and the adjudicating authority (NCLT).

Vedanta's bid value was Rs 16,726 crores, and Adani Enterprises' bid was Rs 14,535 crore.

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, located near the 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. It also has investments in subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and several other companies.