Core Viewpoint - Adani Enterprises Ltd has submitted a resolution plan exceeding ₹15,000 crore for the bankrupt Jaiprakash Associates Ltd, seeking approval under the Insolvency and Bankruptcy Code, with hearings expected to resume in January 2026 [1][2]. Group 1: Resolution Plan Details - The resolution plan received approximately 93% approval from financial creditors during an electronic voting process, with the National Asset Reconstruction Co Limited holding 85.43% of the voting power, which was sufficient for approval [2][3]. - The total admitted claims against Jaiprakash Associates amount to ₹5.44 lakh crore, with the plan proposing a realizable value of ₹15,343 crore, indicating a recovery rate of about 2.8% for creditors [4]. Group 2: Asset Acquisition - If approved, Adani will gain access to significant assets, including 3,985 acres of land in Noida and Greater Noida, 6.5 million tonnes of cement capacity, a 24% stake in Jaiprakash Power Ventures Ltd, and a hospitality business with 867 rooms across five hotels [5]. Group 3: Competitive Bidding Process - The bidding process for Jaiprakash Associates included five contenders, with Adani's offer winning due to a higher upfront payment compared to Vedanta's bid of around ₹17,000 crore [6]. Group 4: Background of Jaiprakash Associates - Jaiprakash Associates, once a flagship of the Jaypee Group, entered insolvency in June 2024 after defaulting on over ₹55,000 crore in dues to banks, leading to a significant transfer of debt to the National Asset Reconstruction Co Limited [7].

Core Viewpoint - The National Company Law Tribunal (NCLT) has faced criticism from the Supreme Court regarding its operational inefficiencies and the need for structural reforms to address the backlog of cases, particularly under the Insolvency and Bankruptcy Code (IBC) [2][4][8]. Group 1: Judicial Criticism and Operational Challenges - The Supreme Court has mandated the filling of vacancies in NCLT and NCLAT and the establishment of dedicated IBC benches to address operational inefficiencies [2][3]. - The NCLT's dual role under the Companies Act and IBC has led to a skewed focus on IBC-related cases, impacting its ability to adjudicate other corporate disputes effectively [4][5]. - As of March 31, 2025, there were 48,089 fresh IBC filings and 36,374 filings under the Companies Act, with a total of 30,600 pending IBC cases and 15,033 pending under the Companies Act [5]. Group 2: Proposed Reforms and Future Directions - A parliamentary finance committee has proposed the creation of dedicated NCLT and NCLAT courts for IBC cases to address delays, which currently average 507 days, exceeding the 330-day limit set by the Code [8][9]. - The proposal suggests converting existing NCLTs under the Companies Act to handle IBC matters exclusively, allowing High Courts to regain jurisdiction over all Companies Act matters [9].

Core Insights - The transformation of India's banking sector is attributed to a strong regulatory framework and key policy measures introduced by the Reserve Bank of India (RBI) and the government, exemplified by the State Bank of India's (SBI) growth from a loss in 2018 to becoming a USD 100 billion company [1][9] Regulatory and Structural Reforms - The introduction of the Insolvency and Bankruptcy Code (IBC) in 2016 and the establishment of resolution mechanisms have fundamentally transformed India's credit culture, promoting greater discipline among borrowers and improving asset quality across the banking system [2][5][9] - Major reforms aimed at strengthening monetary and macroeconomic stability include the adoption of a flexible inflation targeting regime, deepening of forex markets, and gradual liberalization of the capital account [5][9] Historical Context and Recovery - The period from 2014 onwards marked a foundational restructuring of the financial system, guided by the principle of "never waste a good crisis," particularly during a time when India was categorized among the "fragile five" economies [6][9] - The transformation was driven by measures focused on recognition, resolution, and recapitalization of banks, including the Asset Quality Review (AQR) initiated in 2015, which compelled banks to recognize the true state of their loan books [7][10] Banking Sector Consolidation - The consolidation of 27 public sector banks into 12 by 2020, along with massive recapitalization programs, significantly strengthened balance sheets, enhanced capital buffers, and revived the capacity for healthy lending [8][10] - The evolution of India's financial system necessitates that prudential rulebooks evolve in a calibrated manner, as banks are now stronger, supervision is more alert, and market-based risk transfer is more effective [8][10]

Core Insights - The Competition Commission of India (CCI) has granted in-principle approval for Jindal Power's acquisition of Jaiprakash Associates Ltd (JAL) amid ongoing insolvency proceedings [1][2] - Other companies, including PNC Infratech, Adani Group, and Dalmia Bharat, have also received approval from the CCI for their proposals to acquire JAL [1][2] Company Overview - Jaiprakash Associates Ltd was admitted into the corporate insolvency resolution process (CIRP) due to a default on loan payments, with creditors claiming ₹57,185 crore [4] - The National Asset Reconstruction Company Ltd (NARCL) is the leading claimant after acquiring stressed JAL loans from a consortium of lenders [4] Assets and Operations - JAL has significant real estate projects, including Jaypee Greens in Greater Noida and Jaypee International Sports City, strategically located near the upcoming Jewar International Airport [5] - The company operates four cement plants in Madhya Pradesh and Uttar Pradesh, although these plants are currently non-operational [6] - JAL also has investments in various subsidiaries, including Jaiprakash Power Ventures Ltd and Yamuna Expressway Tolling Ltd [6]