Jaiprakash Associates: One of India’s largest bankruptcies nears resolution 

The government-backed National Asset Reconstruction Company Ltd (NARCL) is reportedly set to take control of Jaiprakash Associates Ltd (JAL) after no competing bids surfaced for its ₹12,000 crore offer. 

Process advisor IDBI Capital Markets & Securities (ICMS), which had extended the bid deadline by a week to January 14, received no challengers, sealing NARCL’s position as the sole bidder, according to several newspaper reports.

JAL, a Noida-based conglomerate, owes ₹57,177 crore to creditors, including ₹15,465 crore to the State Bank of India and ₹10,443 crore to ICICI Bank. NARCL’s bid offers lenders a recovery of 23%, comprising 15% cash and 85% government-guaranteed security receipts — a structure unique to NARCL. The acquisition, once finalized, will be the largest in NARCL’s portfolio, a critical move to boost its performance after a slow fiscal year.

Earlier this month, nearly a dozen entities expressed interest in JAL’s assets, but none matched or surpassed NARCL’s offer. "It was decided there is no point in extending the timeline since no serious bids are expected," said a person familiar with the process. The formal handover is expected to conclude by March, allowing lenders to record the recovery within the current fiscal year.

JAL, one of the largest unresolved insolvency cases under the Insolvency and Bankruptcy Code (IBC), entered bankruptcy proceedings in 2017 following directives from the Reserve Bank of India. Legal battles have delayed resolutions, but NARCL’s takeover is poised to consolidate valuable assets, including operational cement plants with a capacity of over 9 million tonnes, real estate near the Yamuna Expressway, luxury hotels, a hospital, power plants, and the Buddh International Circuit.

The ₹12,000 crore bid is second only to Videocon Industries’ ₹65,000 crore insolvency case in terms of debt magnitude. As the largest resolution in its history, JAL’s acquisition marks a significant milestone in India’s efforts to resolve high-value distressed cases.