Vedanta chief claims Jaypee bid reversal after written confirmation, analysts question rationale

New Delhi: Mining baron Anil Agarwal on Sunday claimed Vedanta Ltd had received written confirmation of winning the bid for Jaiprakash Associates Ltd, but the decision was later reversed without explanation.

In a social media post, Agarwal said Vedanta was “declared the highest bidder publicly” in the insolvency process. “It was a transparent process. We were informed in writing that we had won. But life is never so simple… the decision was changed,” he said, adding the matter would be addressed at the appropriate forum.

Lenders, however, rejected the claim, saying Vedanta “was never declared the winning bidder” and that the outcome followed a structured evaluation. Billionaire Gautam Adani’s group was the only rival bidder.

The Committee of Creditors (CoC) approved a Rs 14,535 crore bid by Adani Enterprises, which was cleared by the National Company Law Tribunal on March 17. The National Company Law Appellate Tribunal has since refused to stay the order and sought responses from lenders, with the next hearing scheduled for April 10.

While Vedanta’s Rs 16,726 crore offer had a slightly higher value, creditors cited concerns over its staggered payments, lower upfront cash and execution risks. Adani’s bid included over Rs 6,000 crore upfront, offering faster recovery and greater certainty.

Analysts said insolvency outcomes under the IBC depend on creditor consensus and value maximisation rather than headline numbers. The Adani plan secured 93.8 per cent of CoC votes, reflecting lender preference for quicker resolution. Experts also pointed to Vedanta’s past exits and delays in insolvency deals as weighing on confidence, while creditors viewed Adani’s proposal as providing a more reliable and time-bound exit.

JAL, admitted to insolvency in June 2024 with dues exceeding Rs 57,000 crore, has diversified assets across real estate, cement, power and infrastructure, making it one of India’s most closely watched resolution cases.