CCI okays PNC Infratech's proposal to acquire debt-ridden Jaiprakash Associates

New Delhi, Sep 16 (PTI) Fair trade regulator CCI on Tuesday said it has given in-principle approval to PNC Infratech's proposal to acquire debt-ridden Jaiprakash Associates, should it win a bid in the ongoing insolvency proceeding.

"The proposed combination relates to the acquisition of minimum 95 per cent and maximum up to 100 per cent of Jaiprakash Associates Ltd (JAL) by PNC Infratech Ltd (acquirer), or through a special purpose vehicle company that the acquirer may incorporate in the future as its wholly owned subsidiary to acquire JAL," according to a release issued by the regulator on Tuesday.

The Competition Commission of India (CCI) said it has approved the acquisition of JAL by PNC Infratech Ltd.

"Commission approves proposed acquisition of Jaiprakash Associates Ltd by PNC Infratech Ltd," the regulator said in a post on X.

Following a recent ruling by the Supreme Court related to interpreting provisions of the Insolvency and Bankruptcy Code (IBC), an approval from the competition watchdog is mandatory for submission of a resolution plan by the entity concerned.

The entity must obtain the CCI nod before the resolution plan is voted upon by the Committee of Creditors (CoC) of the company undergoing the resolution process under the IBC.

The CoC of Jaiprakash Associates Ltd is still reviewing the resolution plans received, and the voting will be conducted in due course.

Apart from PNC Infratech, the proposals of Adani Group and Dalmia Bharat for JAL acquisition have been cleared by the regulator.

Various other companies, including Vedanta Group and Jindal Power, have also approached the CCI seeking nod to submit respective resolution plans to the CoC of JAL.

JAL was admitted into the corporate insolvency resolution process (CIRP) through the National Company Law Tribunal, Allahabad Bench, order dated June 3, 2024. It was taken to insolvency proceedings after the conglomerate defaulted on the payment of loans.

Creditors are claiming a staggering Rs 57,185 crore.

The National Asset Reconstruction Company Ltd (NARCL) leads the list of claimants after acquiring the stressed JAL loans from a consortium of lenders headed by the State Bank of India.

JAL has major real estate projects like Jaypee Greens in Greater Noida, a part of Jaypee Greens Wishtown in Noida (both on the outskirts of the national capital), and the Jaypee International Sports City, strategically located near the upcoming Jewar International Airport.

It also has three commercial/industrial office spaces in Delhi-NCR, while its hotel division has five properties in Delhi-NCR, Mussoorie, and Agra.

JAL has four cement plants in Madhya Pradesh and Uttar Pradesh, and a few leased limestone mines in Madhya Pradesh. The cement plants, however, are non-operational. It also has investments in subsidiaries, including Jaiprakash Power Ventures Ltd.

Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and several other companies.

Jaypee Group's Jaypee Infratech has already been acquired by Mumbai-based Suraksha Group through an insolvency process.

Suraksha Group has to complete various stalled projects comprising around 20,000 apartments in Noida and Greater Noida. PTI HG HG MR