CCI approves Jindal Power’s bid for Jaiprakash Associates amid insolvency proceedings

India's anti-trust regulator, Competition Commission of India (CCI), on Tuesday (September 30) granted in-principle approval to Naveen Jindal-led Jindal Power Ltd to acquire debt-laden Jaiprakash Associates Ltd (JAL), subject to winning the ongoing insolvency bid.

The move comes as part of CCI’s clearance for resolution plan submissions under the Insolvency and Bankruptcy Code (IBC).

“Commission approves acquisition of Jaiprakash Associates Limited by Jindal Power Ltd,” the regulator announced on X.

Following a Supreme Court ruling on IBC provisions, companies must secure CCI approval before presenting their resolution plans to the Committee of Creditors (CoC). The CoC of JAL is currently reviewing the resolution plans, and voting will be conducted in due course.

JAL entered the corporate insolvency resolution process (CIRP) through the NCLT Allahabad Bench on June 3, 2024, after defaulting on loans, with creditors claiming ₹57,185 crore. The Asset Reconstruction Company Ltd (NARCL) leads the creditor list after acquiring stressed JAL loans from a consortium led by the State Bank of India.

JAL’s portfolio includes large-scale real estate projects like Jaypee Greens in Greater Noida, part of Jaypee Greens Wishtown in Noida, and Jaypee Sports City near the upcoming Jewar Airport.

It also has commercial and hotel properties across Delhi-NCR, Mussoorie, and Agra, four cement plants in Madhya Pradesh and Uttar Pradesh (currently non-operational), and limestone leases.

Also Read: RITES signs MoU with Etihad Rail to expand mobility sector collaboration in UAE