New Delhi: The Vedanta Group has challenged the evaluation criteria used by lenders of Jaiprakash Associates Ltd (JAL), alleging irregularities in the selection of Adani Enterprises as the successful bidder.
During proceedings before the National Company Law Appellate Tribunal (NCLAT), Vedanta’s counsel argued that the valuation framework adopted by the committee of creditors (CoC) undermined the principle of value maximisation under the Insolvency and Bankruptcy Code (IBC).
Senior advocate Abhijeet Sinha questioned whether the evaluation matrix was being used to maximise value or serve other purposes. He contended that tools such as the request for resolution plan (RFRP) and process notes are only guiding mechanisms and cannot override the core objective of maximising returns.
Vedanta claimed its bid was Rs 3,400 crore higher in gross value and Rs 500 crore higher in net present value (NPV) than Adani’s offer, yet was overlooked without adequate discussion. The CoC had appointed BTO India LLC to assess bids, assigning scores based on various parameters. According to Vedanta, Adani scored 29.30 out of 35, while Vedanta received 18.51, a disparity it termed unjustified. It added that it secured full marks on NPV but scored lower on equity infusion parameters.
Vedanta also alleged lack of transparency and fairness, stating that bidders were only shown the highest NPV during the challenge process despite submitting both upfront and deferred payment components.
Earlier, the NCLAT had refused to stay the insolvency resolution process but made it subject to the outcome of appeals. The Supreme Court of India also declined to intervene, directing that any major decisions by the monitoring committee require tribunal approval.
The CoC defended its decision, maintaining that the process complied with IBC norms and that bids were evaluated on multiple factors beyond headline value, including feasibility and execution.