Vedanta Never Declared Highest Bidder in Jaiprakash Associates Auction: RP to NCLAT

Vedanta's Bid for Jaiprakash Associates Ltd Challenged in NCLAT

The resolution professional of debt-ridden Jaiprakash Associates Ltd (JAL) submitted to the National Company Law Appellate Tribunal (NCLAT) that there has been no formal declaration identifying Vedanta as the highest bidder in the insolvency process. According to court submissions, the resolution professional argued that an email circulated to all bidders on September 5 only conveyed the highest financial value discovered during the challenge process, and did not constitute an official declaration of a successful bidder.

The resolution professional, represented by Senior Advocate Abhishek Manu Singhvi, alleged that Vedanta's claim of being the highest bidder amounted to "suppression of material facts." Singhvi argued that the petition lacked a legal and factual basis and that the case presented by the mining group was "completely without foundational facts." The resolution professional claimed that the email did not state that Vedanta was the highest bidder, but rather disclosed that the highest Net Asset Value (NAV) was Rs 12,505.850 crore.

A two-member NCLAT bench observed that the email "only communicates that the highest value as per the identifying criteria is Rs 12,505 crore on NAV basis..." Singhvi responded that this was only a disclosure of the highest NAV, and not a declaration of the best bidder.

| Bidder | NAV | NPV | Gross Value | | --- | --- | --- | --- | | Vedanta | Rs 12,505.850 crore | Roughly Rs 500 crore more | Rs 3,400 crore higher | | Adani Group | | | |

Vedanta had contended that its addendum bid was above NAV and had submitted two petitions challenging the lenders' decision to accept Adani's takeover offer. The resolution professional argued that the Committee of Creditors evaluated plans on a combined quantitative and qualitative matrix, not just on the highest NPV or headline bid amount. The matrix consisted of a total score of 100, with 80 points for the quantitative score and 20 points for the qualitative score.

Singhvi further argued that Vedanta's November 8 addendum was an impermissible unilateral revision, as the challenge process barred any post-closure revision. He claimed that allowing such a revision would violate fairness and level playing field. The resolution professional also stressed that the commercial wisdom of the Committee of Creditors (COC) is not open to re-evaluation.

After the conclusion of the resolution professional's arguments, the bench, comprising Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra, has posted the matter for the next hearing on Monday. Solicitor General Tushar Mehta, who is appearing for banks, will start his arguments from Monday.

The dispute revolves around Vedanta's bid for acquiring JAL through the insolvency process. Vedanta has filed two petitions challenging the March 17 order by the Allahabad bench of NCLT, which approved Adani Enterprises' Rs 14,535-crore bid to acquire JAL.