Jaypee insolvency: CoC picks Adani, rejects Vedanta’s late bid tweak

Solicitor General Tushar Mehta, appearing for the Committee of Creditors (CoC), on Monday defended the resolution process in the Jaypee Infratech insolvency case before the National Company Law Appellate Tribunal (NCLAT). He said the process was transparent, binding, and did not allow any changes after bids were submitted.

Mehta told the tribunal that the process followed a clear, pre-declared scoring system set out in the Request for Resolution Plan (RFRP) and the process note. This system gave weight to key financial factors such as upfront cash for creditors, deferred payments, and equity infusion for reviving the company. Each factor carried marks, which together decided the final ranking of bidders.

Under this system, Adani Enterprises scored about 70.26 marks, well ahead of Vedanta Limited’s 58.85. Mehta said the difference was mainly due to Adani’s higher upfront payment and stronger commitments on deferred payments and equity infusion. He added that the scoring system ensured an objective measure of value for creditors.

He also noted that other bidders, including Dalmia Group and Jindal Power Limited, took part in the process and were bound by the same rules set out in the Information Memorandum and RFRP. These documents, he said, were binding and ensured fairness and consistency.

On Vedanta’s main argument—its November 8, 2025 addendum seeking to revise its bid—Mehta said the rules clearly barred any changes once bids were finalised and the scoring system frozen. Allowing such revisions, he argued, would disrupt the process and could lead to an “endless cycle” of bid changes.

He pointed out that Vedanta’s revised proposal aimed to improve its score in two areas: upfront payment and equity infusion. The company increased its equity infusion from Rs 410 crore to Rs 800 crore and moved part of its deferred payments into the upfront component to boost its score.

Mehta said the Resolution Professional shared the revised proposal with creditors along with legal advice, which consistently said such post-submission changes were not allowed. Accepting them would have meant reopening the process for all bidders, affecting fairness and violating timelines under the Insolvency and Bankruptcy Code. The CoC therefore rejected the addendum.

He also raised concerns about a possible leak of bid-sensitive information, noting that Vedanta’s changes appeared to directly address its scoring gaps.

On the financial difference, Mehta said that even after the proposed changes, the gap between bids would have reduced to about Rs 300 crore, from an earlier estimate of Rs 500 crore. “Our considered view was to adhere strictly to the Information Memorandum and process note, and not deviate from the established framework,” he said.

He added that the CoC’s decision reflected its commercial judgment and aimed to protect transparency, fairness, and finality in the process.

The case will be heard again on Tuesday, when Vedanta or Adani may respond.

(With inputs from ANI)