Mumbai: In a major development in one of India’s largest ongoing insolvency cases, Adani Enterprises on Wednesday announced that creditors of debt-laden Jaiprakash Associates have approved its long-contested bid to take over the bankrupt infrastructure conglomerate. The approval marks a key milestone in the resolution process under India’s Insolvency and Bankruptcy Code (IBC), which has been underway since June last year.

Creditors favour upfront-heavy Adani bid

Earlier in the day, two officials told Reuters that the lenders’ committee had opted for Adani’s ₹135-billion offer, despite Vedanta submitting a higher ₹170-billion bid. The deciding factor, they said, was the structure of the payments. Adani’s proposal involves significantly larger upfront payouts and a shorter repayment schedule of 1.5 to 2 years—features the creditors, mostly Indian banks, viewed as more favourable.

Vedanta’s offer, by contrast, was spread over five years, a timeline lenders considered too long given the magnitude of outstanding dues. A spokesperson for Vedanta later said the company respects the commercial discretion of the creditors’ committee.

Though Adani Enterprises did not disclose the financial details of its offer in its statement, industry sources confirmed that the creditors endorsed Adani’s upfront-oriented plan by a comfortable margin.

“Creditors have voted in favour of Adani. The Committee of Creditors (CoC) is expected to formalise the decision and submit it to the National Company Law Tribunal (NCLT),” one of the officials said.

One of India’s biggest bankruptcy cases

Jaiprakash Associates, once among the country’s largest infrastructure and construction groups, owes creditors about ₹550 billion. Mounting debt, stalled projects and liquidity troubles resulted in insolvency proceedings being initiated in June 2023. The large quantum of claims and the strategic importance of the group’s assets have made it one of the most closely watched bankruptcy cases in the country.

The National Asset Reconstruction Company Ltd (NARCL), which acquired Jaiprakash’s stressed loans from a consortium led by State Bank of India, is now the principal claimant in the process. Emails sent to NARCL for comments went unanswered.

Besides Adani and Vedanta, the bidding process saw interest from Dalmia Bharat, Jindal Power and PNC Infratech. Manoj Gaur, the controlling shareholder of Jaiprakash Associates, submitted a last-minute offer, but it was subsequently withdrawn.

Why lenders preferred Adani

Banking sources said that lenders were clear about their preference for a resolution plan that offered swift recovery, especially given the long delays and dwindling value of assets observed in many large insolvency cases historically.

Adani’s proposal, they said, offered:

  • Higher upfront payments compared with competing bids.
  • Shorter payout timeline, reducing risks associated with long-term recoveries.
  • A clearer operational roadmap, reassuring banks about continuity of the group’s infrastructure and cement businesses.

Vedanta’s higher bid value did not outweigh concerns surrounding its five-year repayment window. Lenders were also cautious about the performance risks tied to extended timelines.

Next steps: NCLT approval

With the creditors’ vote in favour of the Adani plan, the CoC will now formally forward the resolution to the NCLT for approval. The tribunal’s clearance is mandatory before Adani Enterprises can take control of the company’s assets.

Adani’s interest in distressed infrastructure and cement assets has been consistent, and winning control of Jaiprakash Associates could further consolidate the conglomerate’s growing footprint in these sectors.

Significance for the insolvency ecosystem

The resolution progress in this high-value case will be closely watched by policymakers, investors and the banking sector. Quick approvals and structured recoveries are crucial for maintaining lender confidence in India’s bankruptcy framework.

If the NCLT clears the plan without major litigation or delays, it may set a precedent for other large insolvency cases where upfront-heavy bids could be prioritised.

Conclusion

With creditors backing Adani Enterprises’ offer, Jaiprakash Associates appears closer to completing a long-pending resolution. The coming weeks will determine how swiftly the NCLT moves and whether any legal challenges emerge. For now, the vote signals creditor confidence in Adani’s ability to revive the troubled infrastructure giant and deliver faster financial recovery.