RP Clarifies to NCLAT: Vedanta Never Named Highest Bidder for Jaiprakash Associates

Vedanta has filed petitions against the National Company Law Tribunal's (NCLAT) decision to approve Adani Enterprises' ₹14,535 crore bid for Jaiprakash Associates Ltd (JAL).  

The mining group argues that the process was flawed and that it was not declared the highest bidder. 

Vedanta's Position on the Bidding Process 

As per PTI report, Senior Advocate Abhishek Manu Singhvi, representing the Resolution Professional (RP) for JAL, informed the National Company Law Appellate Tribunal (NCLAT) that Vedanta was never formally declared the highest bidder.  

An email dated September 5 was circulated to all bidders, indicating the highest financial value discovered during the challenge process. However, this did not constitute an official declaration of a successful bidder. 

Mr. Singhvi argued that Vedanta's claim of being the highest bidder was a "suppression of material facts" and lacked a legal and factual basis.  

He emphasised that the email was a simple disclosure of the highest Net Asset Value (NAV) of ₹12,505.850 crore and not a declaration of the best bid. 

Evaluation Criteria and Vedanta's Objections 

The Committee of Creditors evaluated plans on a combined quantitative and qualitative matrix, not solely on the highest NPV or headline bid amount.  

Vedanta contended that its bid was ₹3,400 crore higher in gross value terms and ₹500 crore more in NPV compared to Adani's offer. 

Mr. Singhvi explained that the evaluation was based on a total score of 100, with 80 for quantitative and 20 for qualitative aspects.  

This matrix was not specific to Adani or Vedanta but was a standard holistic evaluation approach. 

Read More: Vedanta Share Price in Focus After Tragic Accident at Chhattisgarh Plant! 

Challenge Process and Legal Proceedings 

Vedanta claimed it was not given a chance to match Adani's bid. However, Mr. Singhvi stated that the challenge process barred any post-closure revision.  

Vedanta's November 8 addendum was an impermissible unilateral revision, submitted after being informed on November 7 that voting would proceed. 

The NCLAT, comprising Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra, has scheduled the next hearing for Monday.  

Solicitor General Tushar Mehta, representing the banks, will present his arguments. 

Conclusion 

Vedanta's challenge to the NCLT's decision approving Adani's bid for Jaiprakash Associates highlights procedural disputes in the insolvency process. The outcome of this legal battle will be closely watched as it unfolds in the coming hearings. 

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