Agarwal Questions Bidding Process, Cites Gita

Vedanta Chairman Anil Agarwal has taken to social media to criticise lenders after his group failed to secure the Jaiprakash Associates Ltd. assets, despite submitting what he says was a higher offer. In a post on X, Agarwal referring to learnings from Gita said he held no attachment to the asset but questioned the process. "Recently, the asset went into a public auction by CoC in the IBC process. Many strong bidders participated. Suddenly, the sentiment and wishes of Jaiprakash Gaur ji came rushing back to me. One by one, everyone dropped out of the bidding. Finally, we were declared the highest bidder publicly. It was a transparent process. We were informed in writing that we had won. But life is never so simple. After some days, the decision was changed.," he posted.

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"Don't want to go into the details. That is for the right forum. But I want to share something from my heart. We have no attachment to this asset. If it comes, it is God's grace. If it goes, that is also his wish. But one thing we believe strongly. When something is promised in dharma, it should not be taken back... So, what should one do? Gita gives a simple answer - do your duty, with courage, but without anger or attachment. That is what we will do. We will place the facts in the right way. We will follow the right path," he added.

Analysts Question Criticism, Highlight IBC Framework

However, analysts have questioned the rationale of his criticism. "The resolution process under IBC is ultimately driven by a structured framework focused on value maximisation for creditors While interim outcomes during the bidding process may vary, the final decision rests with the Committee of Creditors through a defined evaluation matrix and voting process," said analysts with Incred Equities in their latest report.

"In this case, the resolution plan approved with ~93.8% CoC vote and subsequent NCLT approval reflects that final commercial decision. In that context, outcomes are determined by the prescribed process and lender consensus, rather than individual sentiments around the asset," the report added. "A higher number does not automatically translate into a winning bid, especially in a time-bound insolvency process," it further said. Adani has offered over Rs 6000 crore upfront payment, while Vedanta in its bid offered only Rs 2000 crore.

Vedanta's Past Insolvency Track Record Scrutinised

Experts also point to Vedanta's track record in past insolvency cases as a factor weighing on confidence. In 2018, Vedanta emerged as the highest bidder for GMR Chhattisgarh Energy with a bid of about Rs 2,500 crore but later exited the transaction. The same year, the group withdrew from the Ind-Barath Energy (Utkal) deal after receiving approval from the National Company Law Tribunal, leading to legal disputes. In another case, Vedanta's acquisition of Meenakshi Energy faced prolonged litigation and delays, with the transaction eventually closing in 2023 after several revisions.

NCLAT Declines Interim Stay on Adani's Approved Bid

Meanwhile, on March 24, the National Company Law Appellate Tribunal's (NCLAT) declined any interim stay over the Vedanta Group's plea against the order passed by the NCLT approving Rs 14,535 crore bid by Adani Group's bid for acquiring Jaiprakash Associates Ltd (JAL).

The NCLAT two-member bench sought a response from the Committee of Creditors (CoC) of JAL within a week and directed to list the matter on April 10 for the next hearing The Jaypee case is among India's largest and most closely watched insolvency resolutions, with lenders prioritising certainty, speed, and enforceability as much as headline value.