Rs 57,185 Crore In Debt, Jaypee Group Enters Final Phase Of Insolvency; 5 Top Companies Bid | Business News

Last Updated:June 26, 2025, 15:27 IST

JAL notified the stock exchanges on Tuesday, June 24, that five resolution plans have been submitted by the deadline set by the appointed resolution professional

Once a towering name in infrastructure and real estate sectors, the Jaypee Group has officially entered the final phase of bankruptcy proceedings. Jaiprakash Associates Limited (JAL), the group’s flagship company, has received five bids accompanied by earnest money deposits for its acquisition under the corporate insolvency resolution process.

Despite the company’s liabilities standing at a staggering Rs 57,185 crore, there remains considerable interest from major corporate players. At an earlier stage, as many as 25 companies had shown interest in acquiring JAL, but after due diligence and technical evaluations, only five have submitted formal resolution plans.

JAL notified the stock exchanges on Tuesday, June 24, that five resolution plans have been submitted by the deadline set by the appointed resolution professional. The bids were opened at a lenders’ meeting held on Wednesday, June 25.

While the company has not disclosed the names of the bidders, industry sources say the list includes Adani Enterprises, Vedanta (owned by mining magnate Anil Agarwal), Dalmia Bharat Cement, Jindal Power, and PNC Infratech.

This level of interest, say insolvency experts, is not entirely surprising given the group’s vast land holdings, strategic assets in the Delhi-NCR region, and once-thriving cement and hospitality businesses. Notably, the company’s market capitalisation has plummeted to just Rs 785 crore as of June 25, less than 1.5% of its outstanding dues, highlighting the severe erosion of investor confidence.

The once-expansive Jaypee empire, whose projects helped shape the skylines of Noida and Greater Noida, was dragged into bankruptcy after defaulting on massive loans. In a landmark order on June 3, 2024, the Allahabad Bench of the National Company Law Tribunal (NCLT) formally admitted JAL into insolvency.

While lenders are hoping to recover at least a fraction of their claims, the process is expected to be long and complex. The National Asset Reconstruction Company Limited (NARCL), which took over a large portion of JAL’s debt from a consortium led by the State Bank of India (SBI), is now the biggest claimant in the process.

Jaypee Infratech, previously acquired by the Suraksha Group, was initially also in the fray with a resolution plan of its own. However, sources indicate that its bid was disqualified for failing to meet key criteria laid out in the bidding process.

JAL’s assets, though financially stressed, include some of the most strategically located real estate in the country. These include:

• Jaypee Greens in Greater Noida
• Parts of Jaypee Greens Wishtown in Noida
• Jaypee International Sports City, near the under-construction Jewar International Airport

Additionally, the group holds three commercial and industrial properties in the Delhi-NCR region. Its hospitality portfolio comprises five hotel properties across NCR, Mussoorie, and Agra.

The group also has four cement plants located in Uttar Pradesh and Madhya Pradesh, though these have reportedly been non-operational in recent months. It retains access to leased limestone mines in Madhya Pradesh, which could be revived by new owners.

The resolution professional will now evaluate the submitted bids for compliance, viability, and financial strength. If an acceptable plan is approved by the Committee of Creditors, it will then need to be ratified by the NCLT.

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