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CCI approves Dalmia's proposal to acquire Jaiprakash Associates
JAL is currently undergoing insolvency resolution proceedings. The CCI's approval for Dalmia's proposal comes ahead of the committee of creditors' (CoC) final decision on selecting a successful bidder. The Adani Group's application for the same acquisition is still under review by the antitrust regulator.
'The proposed combination envisages 100 per cent acquisition of Jaiprakash Associates Limited (JAL) by Dalmia Cement (Bharat) Limited (Acquirer) pursuant to a corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016,' the CCI's press statement said.
The CCI added that a detailed order will follow.
JAL is engaged in diverse business activities including real estate, cement, hospitality, and engineering, procurement and construction.
Dalmia Cement is a wholly owned subsidiary of Dalmia Bharat Limited (DBL), which is the ultimate parent entity of the Dalmia Bharat Group. DBL is primarily engaged in the manufacture and sale of cement.
JAL entered insolvency on 3 June 2024. Besides the Adani and Dalmia groups, Vedanta Group, Jindal Steel & Power Ltd (JSPL), and PNC Infratech have also submitted resolution plans for the beleaguered conglomerate.
After the last meeting with bidders, lenders had asked all resolution applicants to submit revised resolution plans without any conditionalities and with a definitive bid amount, according to sources.
Most bids remain contingent on the outcome of a key legal case concerning Jaiprakash's 1,000-hectare Sports City project in Greater Noida.
In March, the Allahabad High Court upheld a decision by the Yamuna Expressway Industrial Development Authority (Yeida) to cancel the land allotment. The matter is currently pending before the Supreme Court.
Following a recent Supreme Court ruling, resolution applicants are now expected to secure CCI approval for their plans before seeking approval from the CoC.
However, the Ministry of Corporate Affairs is expected to amend this provision in the proposed Insolvency and Bankruptcy Bill to clarify that prior permission from the CCI is not required for submitting bids under the CIRP.
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