Last week the Competition Commission of India (CCI) approved mining major Vedanta’s ₹17,000-crore bid for Jaiprakash Associates Ltd (JAL), the bankrupt flagship entity of Noida’s Jaypee Group. In doing so, it set the stage for a high-stakes contest with the Adani Group, whose ₹12,600-crore bid for JAL was approved in August.
Despite carrying total liabilities of ₹55,371 crore as of 30 September 2025, JAL has emerged as one of India’s most coveted acquisition targets.
To date, CCI has approved bids from six major companies for JAL: Vedanta, Adani Group, Jindal Steel & Power Ltd, PNC Infratech, Suraksha Group, and Dalmia Bharat, whose proposal to acquire a 100% stake in JAL has also been cleared.
Mint explains why so many companies are rushing to acquire JAL, and what it means for India’s evolving insolvency regime, which is increasingly facilitating strategic takeovers of distressed assets.
How and when did JAL go bankrupt?
Founded by Jaiprakash Gaur, the Jaypee Group began operations in 1979 as a construction and engineering company before gradually diversifying into cement, power, real estate, infrastructure and hospitality.
JAL, its flagship listed entity, was incorporated in 1982 to consolidate the group’s cement, power and infrastructure operations. At its peak, JAL was the poster child of India’s infrastructure boom, executing marquee projects such as the 165-kilometre Yamuna Expressway connecting Noida and Agra.
However, the company relied heavily on huge loans for this rapid expansion, leaving it financially overleveraged. While the 2008 global financial crisis delivered the first blow, operational challenges proved more severe. By 2011, projects such as Wish Town faced delays and stalled construction, prompting complaints from tens of thousands of homebuyers.
In 2018, ICICI Bank filed the first bankruptcy petition against the company under Section 7 of the Insolvency and Bankruptcy Code (IBC), followed by State Bank of India in 2022, setting the stage for full-fledged insolvency proceedings by 2024-25.
JAL’s debt is estimated at ₹55,371 crore as of September 2025, much of which has been transferred to the National Asset Reconstruction Company Ltd (NARCL), the government-backed ‘bad bank’ tasked with resolving large stressed loans.
Which companies bid for the distressed company?
JAL received 26 bids, with six major firms—Vedanta, Adani Group, Dalmia Bharat, JSPL, PNC Infratech, and Suraksha Group—submitting insolvency resolution plans. The final contenders were Vedanta with a ₹17,000-crore bid and Adani, which bid ₹12,600 crore.
The CCI had approved Adani’s acquisition on 26 August, allowing Adani Enterprises Ltd (AEL), Adani Infrastructure and Developers Pvt Ltd (AIDPL), or any other Adani Group entity to acquire up to 100% of JAL.
Why are companies racing to acquire JAL?
For conglomerates such as Vedanta and Adani, JAL represents a rare strategic opportunity. Its diversified portfolio spans cement plants, captive power units, limestone mines, infrastructure projects, prime real estate, and hospitality properties, offering multiple avenues for expansion.
For Vedanta, acquiring JAL provides an entry into cement and infrastructure while adding high-value real estate, industrial and mining assets.
For the Adani Group, JAL’s cement plants—including the Shahabad Grinding Unit (60 MW captive power plant) and the Chunar factory—and leased limestone mines offer capacity expansion and raw-material security, critical for strengthening presence in north and central India. Ambuja Cements, for example, plans to expand production from 100 million tonnes per annum (MTPA) in FY25 to 140 MTPA by FY28, primarily through acquisitions and brownfield projects.
Beyond industrial assets, JAL controls prime real estate such as Jaypee Greens (Greater Noida), Jaypee Greens Wishtown (Noida), and Jaypee International Sports City near Jewar Airport, apart from commercial properties in Delhi-NCR. Its hospitality portfolio of five hotels across NCR, Mussoorie, and Agra further diversifies its revenue streams.
What does the race mean for the IBC?
According to insolvency lawyers, the competitive bidding for JAL shows how the IBC has matured beyond a creditor recovery tool into a platform for strategic acquisitions and market consolidation. High-value corporate insolvencies are now being leveraged to acquire multi-sector assets at distressed valuations under court supervision.
“Market consolidation at a throwaway price. The Vedanta-JAL case perfectly illustrates how conglomerates can diversify into real estate, infrastructure, and industrial sectors at valuations impossible outside the IBC,” said Amir Bavani, founder of AB Legal Hyderabad.
Shravanth Shanker, advocate-on-record at the Supreme Court of India, added, “By bidding within the IBC framework, conglomerates gain discounted valuations and regulatory safe harbour. Acquisitions obtain binding effect over all stakeholders once the NCLT (National Company Law Tribunal) approves the resolution plan.” He added that this model was reshaping due diligence and risk allocation, turning the IBC into a de facto market for corporate control rather than a mere debt recovery tool.
Alay Razvi, managing partner at Accord Juris, noted that as NARCL held most of JAL’s ₹55,000-crore debt, bidders could focus on monetising assets and turning the company around instead of participating in complex bilateral debt renegotiations. This approach improves clarity, aligns bidder incentives with creditor recovery, and shows how the IBC can unlock value in large, multi-asset conglomerates through centralized, asset-focused resolution, he added.
What’s next in JAL’s insolvency proceedings?
Mint reported earlier that with CCI approval in place, the committee of creditors (CoC) was reviewing how bidders planned to finance the acquisition and had requested signed, non-conditional resolution plans from all bidders. These plans will be evaluated over the next two to four weeks, and lenders will likely seek proof of funds from the winning bidder.
The final plan is expected to be put to a CoC vote in November, and will require at least 66% approval before it is submitted to the NCLT for final sanction and execution.
What’s the fate of other Jaypee Group companies?
Several Jaypee Group entities are under insolvency or have already been acquired. Jaypee Infratech Ltd (JIL), known for delayed housing projects, entered insolvency in 2017 and was acquired by the Suraksha Group in June 2024, which is now completing the stalled residential developments.
Bhilai Jaypee Cement, a JAL subsidiary, entered insolvency in October 2025 after defaulting on a ₹45-crore payment to an operational creditor.
Other subsidiaries including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, and Jaypee Infrastructure Development Ltd, remain part of the ongoing restructuring or operational portfolio.
