Jaiprakash Associates Bidders to Join ₹12,000 Crore Challenge Auction

Creditors of Jaiprakash Associates Limited (JAL) have called for a challenge auction to be held on Friday, as per Business Standard reports. The process will begin with a floor value of ₹12,000 crore, set in terms of net present value (NPV). The auction is part of the ongoing resolution process for the debt-laden company.

Process and Rules

As per news reports, the auction will be conducted through email. Each round will require bidders to increase their offer by at least ₹250 crore. Participants will get one hour to review and adjust their bids, while lenders will use half an hour to examine offers through a formula-based approach.

If the highest bid remains unchanged for 2 consecutive rounds, the process will stop, and lenders will then seek revised plans with funding sources.

Land Issue Commitment

As per news reports, the Committee of Creditors (CoC) has asked bidders to agree to pay an additional amount if the Yamuna Expressway Industrial Development Authority (YEIDA) land case is resolved in JAL’s favour. The Allahabad High Court upheld Yeida’s decision to cancel the land allotment earlier this year, and the matter is now with the Supreme Court.

Competing Bidders

5 companies are in the race for JAL’s assets: Adani Group, Dalmia Bharat, Vedanta Group, Jindal Steel & Power (JSPL), and PNC Infratech. Adani and Dalmia have already secured Competition Commission of India (CCI) approval for their proposals. PNC Infratech and Jindal Power are awaiting clearance, while Vedanta has not applied for approval yet.

Company and Liabilities

JAL’s portfolio includes cement, real estate, infrastructure, and hospitality projects. It is also linked to large developments such as Jaypee Greens, Wish Town, and the International Sports City near Jewar Airport. Creditors’ admitted claims against the company stand at more than ₹59,000 crore.

Read more: Jaiprakash Associates Insolvency: Adani, Vedanta, Dalmia Brace for Real Time Bidding in JAL Resolution!

Conclusion

The outcome of the auction will determine the resolution plan for JAL, with lenders seeking clarity on bids, funding, and commitments linked to disputed land assets.

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