NCLT Approves Adani's Rs 14,535 Cr Plan for Jaiprakash Associates

Introduction

The National Company Law Tribunal (NCLT), Allahabad Bench, has formally approved the resolution plan submitted by Adani Enterprises Limited for the debt-laden Jaiprakash Associates Limited. The tribunal delivered its oral pronouncement on March 17, 2026, marking a significant milestone in one of India's major corporate insolvency cases. This approval clears the path for the Adani Group to acquire the infrastructure company and concludes a lengthy resolution process under the Insolvency and Bankruptcy Code (IBC), 2016.

The NCLT's Final Approval

The decision represents the final step under Section 31 of the IBC, endorsing the resolution plan that Adani Enterprises originally submitted on October 14, 2025. The Committee of Creditors (CoC) for Jaiprakash Associates had previously approved Adani's proposal in November 2025, identifying it as the successful resolution applicant. The NCLT's order validates the CoC's decision and provides the legal framework for the plan's implementation. Adani Enterprises has confirmed the development through a regulatory filing, stating that a detailed disclosure will be made once the official written order is available.

Financials of the Resolution Plan

Adani Enterprises' successful bid is valued at Rs 14,535 crore (or INR 145 billion). This acquisition addresses the significant debt burden of Jaiprakash Associates, which owed lenders approximately Rs 55,000 crore. The resolution plan provides a recovery path for creditors, although it involves a substantial haircut on the total outstanding dues. The acquisition is a strategic move for the Adani Group, expanding its footprint in the infrastructure sector by taking over a company with assets in cement, power, and construction.

Impact on Existing Shareholders

A critical component of the approved resolution plan is its direct impact on the existing shareholders of Jaiprakash Associates. The plan mandates the immediate delisting of the company's securities from all stock exchanges. Importantly, this will be executed with zero consideration for shareholders. The official disclosure clarifies that the liquidation value of Jaiprakash Associates was insufficient to cover the claims of even the secured creditors in full. Consequently, both equity and preference shareholders will receive no value for their holdings, and all existing share capital will be cancelled and extinguished upon the plan's effective date.

Key Details of the Acquisition

The Bidding Contest

The path to Adani's successful bid involved a competitive process with other major players. Vedanta, Dalmia Bharat, and Jindal Power were also in the running to acquire Jaiprakash Associates. Notably, Vedanta had submitted a higher bid of INR 170 billion. However, the Committee of Creditors evaluated the proposals on multiple parameters beyond just the financial offer. Adani Enterprises' plan received a higher score of 70 from the CoC, compared to Vedanta's 58. The CoC defended its decision, stating the process was fair and transparent, leading to the selection of Adani's comprehensive plan.

Implementation Framework and Timeline

With the NCLT's approval secured, Adani Enterprises is set to implement the resolution plan within 90 days from the date of the order. The plan allows for flexible execution, which may be carried out directly by Adani Enterprises or through its various group entities. These include Adani Power Limited, Adani Infra (India) Limited, and Adani Ports and Special Economic Zone Limited. The structure also permits the use of special purpose vehicles (SPVs) to facilitate the takeover and restructuring process in accordance with the approved terms.

Background of the Insolvency

Jaiprakash Associates, the flagship company of the Jaypee Group, was admitted into insolvency proceedings in June 2024. The process was initiated after a petition was filed by ICICI Bank over a debt of INR 12.69 billion. The company's financial distress stemmed from a large debt pile accumulated over years of expansion across various sectors. The insolvency case has been one of the most closely watched in the country due to the scale of the debt and the assets involved.

Market Reaction and Next Steps

Following the announcement, shares of Adani Enterprises ended the trading session on March 17, 2026, marginally lower at Rs 1,975 on the NSE. The immediate next step is the release of the detailed written order by the NCLT. Upon its receipt, Adani Enterprises will proceed with the full implementation of the resolution plan, including the delisting process and operational takeover. The company, through its Company Secretary Jatin Jalundhwala, has committed to making all necessary disclosures as required under SEBI regulations.

Conclusion

The NCLT's approval of Adani Enterprises' resolution plan for Jaiprakash Associates marks the end of a complex and high-stakes insolvency proceeding. It allows for the revival of a stressed company while providing a resolution for its creditors. For the Adani Group, it is a significant strategic acquisition that strengthens its position in India's infrastructure landscape. The focus now shifts to the swift and effective implementation of the plan over the next three months.