Adani Gets CCI Approval For Takeover Of Jaiprakash Associates

The Competition Commission of India (CCI) has cleared Adani Group’s plan to acquire Jaiprakash Associates Limited (JAL).

In its statement issued on Wednesday, CCI noted, “The proposed combination relates to the acquisition of up to 100 per cent shareholding of Jaiprakash Associates Limited (JAL) by Adani Enterprises Limited (AEL) and Adani Infrastructure and Developers Private Limited (AIDPL) or any other entity forming part of Adani Group.”

JAL is currently under the corporate insolvency resolution process, being dealt with under the Insolvency and Bankruptcy Code, 2016, following the direction of the National Company Law Tribunal (NCLT) in Allahabad.

The Adani Group has interests in several fields, including energy, materials, logistics, resources, and agriculture.

AEL serves as the group’s flagship firm, while AIDPL, fully owned by Adani Properties Private Limited, acts as the parent company for its real estate arm.

JAL, once known as a leading infrastructure conglomerate, is active in diverse areas such as engineering and construction, cement, power, real estate, fertilisers, sports, and hospitality.

As per IBC rules, bidders in insolvency cases must secure approval from CCI before they can submit their resolution plans for consideration.

The Supreme Court has also made it compulsory for committees of creditors to obtain competition clearance before voting on any resolution plan that qualifies as a ‘combination’ under the Competition Act.

Debt and Insolvency Background

JAL landed in insolvency after defaulting on loans from a banking consortium led by the State Bank of India, with creditor claims amounting to Rs 57,185 crore.

The National Asset Reconstruction Company Limited (NARCL) has since taken over a large share of these loans, becoming the principal claimant.

The company’s real estate portfolio includes major projects such as Jaypee Greens in Greater Noida, Jaypee Wishtown in Noida, and the Jaypee International Sports City near the upcoming Jewar airport in the NCR region.

In addition, JAL owns four cement plants in Madhya Pradesh and Uttar Pradesh, along with leased limestone mines in Madhya Pradesh, though the cement facilities remain shut.

It also holds investments in Jaiprakash Power Ventures Ltd and Yamuna Expressway Tolling Ltd.