Bidders vying for Jaiprakash Associates’ assets have sought urgent clarity on the legal status and ownership of nearly 965 hectares of land parcels — amid fears of a repeat of the Bhushan Steel-JSW takeover controversy, where asset control ambiguities post-acquisition triggered disputes.

Sources say questions have been raised on whether these land parcels — currently embroiled in ongoing litigation — can be deemed part of Jaiprakash Associates’ corporate assets under the insolvency process.

The Committee of Creditors (CoC) had initially seen interest from 25 parties. However, nearly 18 of them dropped out, and one bid was disqualified over lack of bank guarantees. Five bidders that include Adani Enterprises, Vedanta, Jindal Power, Dalmia Bharat Cement, and PNC Infratech, were then shortlisted.

The Suraksha Group-owned Jaypee Infratech confirmed its participation but didn’t make the final shortlist, sources said.

Vedanta, Jindal Power and Dalmia Bharat Cement are yet to officially respond to queries on their bids.

In a regulatory filing, Jaiprakash Associates stated:“…corporate insolvency resolution process of Jaiprakash Associates Limited (“RFRP”), the resolution professional has received five resolution plans along with earnest money, till the submission date prescribed under the RFRP.”

Jaiprakash, one of India’s largest and keenly watched corporate insolvency proceedings, has dues of nearly ₹57,000 crore to banks and financial institutions.

Bids sought were for entire operations of the debt-laden Jaiprakash Associates — which included power, cement, hospitality, Formula 1 racing track, gold course and stadium, and land parcels along the Yamuna Expressway (in Uttar Pradesh) — and valuations were expected to be worth around ₹12,000 crore.

Marquee assets

Jaiprakash Associates’s portfolio includes marquee assets such as Jaypee Greens in Greater Noida, parts of Wishtown in Noida, and the Jaypee International Sports City, strategically located near the under-construction Jewar International Airport. It also owns multiple hotel assets in Delhi-NCR, Agra, and Mussoorie, as well as three commercial properties and four non-operational cement plants in Uttar Pradesh and Madhya Pradesh.

The National Asset Reconstruction Company (NARCL), which acquired around ₹55,000 crore of JAL’s debt by paying ₹12,000 crore in the form of cash and security receipts (15:85) in March this year, forms a 90 per cent creditor base and is the principal claimant.

Other lenders include Asset Care & Reconstruction Enterprise (ACRE), Arcil, external commercial lenders of SBI and Bank of Baroda, and a large base of homebuyers.

However, businessline has learnt that some of the bidders have questioned whether valuations need to be reconsidered if land parcels along the Yamuna Expressway are taken back by the authorities. Apparently, Jaiprakash, under its insolvency proceedings, have included them as a “corporate asset”, but there are litigations surrounding the same.

They have also sought clarity on the future course of action in case Jaiprakash lose control over these land parcels. ‘

For instance, Dalmia Bharat — amongst the five shortlisted bidders — had previously entered into an agreement for acquisition of Jaiprakash Associates’ cement business; but the deal fell through as Jaiprakash went into corporate insolvency. The cement maker had to provide for impairment losses to the tune of ₹113 crore for ending rolling arrangements.

“Once a bid is won, and post that the bidder loses control over the land parcels, then what is the recourse one has? It is as good as the JSW - Bhushan scenario where one company has invested going by the then laid down procedures, yet there is no clarity over ownership of the asset,” one of the five shortlisted bidders said.

What makes Jaiprakash a lucrative asset is its land bank located near the upcoming Jewar airport, off Noida, Uttar Pradesh. The land has high commercial value and significance.

But these allotments are now mired in litigation.

Litigations

In May, the Supreme Court allowed the Yamuna Expressway Industrial Development Authority (Yeida) to appoint new developers to complete residential projects of Jaiprakash Associates, after the authority’s decision to cancel a 1,000-hectare lease to Jaiprakash was upheld by the Allahabad high court in March. The Court listed the matter for July 29.

The order came against the backdrop of Jaiprakash, currently under insolvency, challenging the Allahabad high court’s March 10 order in the top court. Jaiprakash’s resolution professional, banks and financial institutions also objected to the high court order. The Yeida had cancelled six allotments in February 2020, citing lapses in the payment timeline as per the lease agreement. The company challenged the cancellation.

Jaiprakash’s RP was not available for comment.

Published on June 26, 2025