Jaypee founder backs Adani takeover of Jaiprakash Associates: 'We fully respect CoC's decision'

Jaypee Group founder Jaiprakash Gaur has expressed confidence that the Adani Group will carry forward the legacy of Jaiprakash Associates Ltd (JAL) with “renewed energy, responsibility, and purpose”, after lenders selected it as the successful bidder in the insolvency process.

“I have every confidence that under the leadership of Shri Gautam Adani, the legacy of Jaiprakash Associates will be carried forward with renewed energy, responsibility, and purpose, ensuring that the aspirations of all stakeholders are fulfilled,” Gaur said in a statement.

He said the Committee of Creditors (CoC) has selected the Adani Group as the successful resolution applicant and that the decision is fully respected.

“The Committee of Creditors has selected the Adani Group as the successful Resolution Applicant, and we fully respect this decision,” he added.

Gaur also appreciated the “fair and transparent” process conducted by the CoC and the resolution professional, and thanked both Adani Group and Vedanta Group for participating in the insolvency proceedings.

The development comes amid an ongoing legal tussle over the acquisition of the debt-laden JAL.

Last month, the Allahabad bench of the National Company Law Tribunal (NCLT) approvedAdani Group’s ₹14,535 crore bid to acquire JAL.

However, the decision was challenged by Vedanta Ltd, which had submitted a higher bid of ₹17,926 crore, before the National Company Law Appellate Tribunal (NCLAT).

The Supreme Court earlier this week declined to interfere with the NCLAT’s order refusing to stay the implementation of Adani Group’s bid.

The top court, however, directed that the monitoring committee of JAL should not take any major policy decisions without prior approval of the appellate tribunal.

A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi asked Vedanta Ltd and Adani Enterprises Ltd to raise their contentions before the NCLAT, which is scheduled to commence final hearings in the matter on April 10.

The court also directed the appellate tribunal to decide the dispute expeditiously.

Vedanta had approached the Supreme Court seeking a stay on the NCLT order after the NCLAT, on March 24, declined to grant interim relief on its plea against the approval of Adani Group’s resolution plan.

The appellate tribunal had sought a response from the CoC of JAL within a week and listed the matter for further hearing on April 10.

Vedanta, which was also in the race to acquire JAL through the insolvency process, has filed two appeals before the NCLAT challenging the validity of the resolution plan as well as its approval by the CoC and the NCLT.