First challenge filed against Adani’s ₹14,543-crore resolution plan for Jaiprakash Associates

Velocity Enterprises, a Bhopal, Madhya Pradesh-based contractor, filed the first objection against Gautam Adani-led Adani Enterprises ₹14,543 crore resolution plan in the National Company Law Appellate Tribunal (NCLAT) for diversified infrastructure group Jaiprakash Associates Ltd (JAL).

Velocity moved the appellate court after the National Company Law Tribunal (NCLT) Allahabad rejected its plea for excess compensation. ₹1 crore arising from contractual work as on March 17.

NCLAT will hear this challenge on March 20.

Confirming the development, Velocity Enterprises’ counsel Aadarsh Kothari told Mint that many creditors like his client were not given a fair opportunity to present their claims.

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“The entire process by which the NCLT has acted reflects great haste in proceeding with the process without giving the appellant a fair and meaningful opportunity to present his case,” he said.

Mint While the NCLT approved the scheme in its March 17 verdict, it learned that more creditors whose claims were rejected are likely to join the fray before the NCLAT in the coming days.

Mint‘s e-mailed questions to Adani Group and JAL solutions expert Bhuvan Madan remained unanswered.

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solution plan

The NCLT approved Adani Enterprises’ resolution plan for JAL on March 17, rejecting objections, including those of rival bidder Vedanta Ltd.

The plan had received approximately 93% votes from financial creditors; this was well above the 66% threshold under the Insolvency and Bankruptcy Code (IBC). The support comes from National Asset Reconstruction Co., which has over 85% voting share. Ltd (NARCL) pioneered.

Adani’s offer was preferred due to its payment structure. ₹6,000 crore upfront and the rest within two years. In comparison, Vedanta’s ₹12,505 crore proposed payments over five years.

against total accepted claims ₹5.44 trillion plan offers a realizable value of approx. ₹15,343 crore, representing a recovery of around 2.8% for creditors.

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Under the plan, Adani will get access to key JAL assets, including around 3,985 acres of land in Noida and Greater Noida, 6.5 million tonnes of cement capacity in Uttar Pradesh and Madhya Pradesh and 24% stake in Jaiprakash Power Ventures Ltd. The acquisition is expected to support the group’s cement expansion strategy.

Velocity’s dispute stems from a 2022 work order for electrical and mechanical works in the Madhya Pradesh irrigation project. While the contractor claimed that he had completed significant work and was denied dues, he also objected to the termination of his contract in December 2024.

The resolution professional rejected his claim, citing delays and alleged overpayments, and the NCLT upheld this view and termed it a contract dispute outside the purview of the IBC.