CCI approves acquisition of Jaiprakash Associates Ltd by Adani Group entities

New Delhi, Aug 27 (IANS) The Competition Commission of India has approved the acquisition of Jaiprakash Associates Limited by Adani Group Entities.

"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," a statement issued by the CCI on Wednesday said.

JAL is currently undergoing a corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016, pursuant to the directions of the National Company Law Tribunal, Allahabad Bench.

The Adani Group has business operations spread across sectors like energy, resources, logistics, materials, and agro, among others. AEL is the flagship company of the Adani portfolio of companies. AIDPL is the wholly owned subsidiary of Adani Properties Private Limited and is the holding company of all the realty businesses of the Adani Group.

JAL is a diversified infrastructure conglomerate with business interests in engineering & construction, cement, power, real estate, fertilisers, hospitality, sports, etc.

Under the provisions of the Insolvency and Bankruptcy Code (IBC), an approval from the competition watchdog CCI is required to participate in the bidding process.

A Supreme Court directive mandates obtaining CCI approval before the committee of creditors can vote on any resolution plan that qualifies as a combination under the Competition Act.

JAL was admitted into the CIRP following an order of the National Company Law Tribunal after the debt-ridden company defaulted on loan payments due to a consortium of banks led by the State Bank of India. Creditors raised claims to the tune of Rs 57,185 crore as dues from JAL.

The National Asset Reconstruction Company Ltd (NARCL) now leads the list of claimants after acquiring the JAL loans from the banks.

JAL has major real estate projects like Jaypee Greens in Greater Noida, Jaypee Wishtown in Noida on the outskirts of Delhi, and the Jaypee International Sports City near the Jewar International Airport that is nearing completion in the NCR..

It also owns four cement plants in Madhya Pradesh and Uttar Pradesh, and a few leased limestone mines in Madhya Pradesh. The cement plants, however, are non-operational.

Besides, the company has investments in Jaiprakash Power Ventures Ltd and the Yamuna Expressway Tolling Ltd.

--IANS

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