New Delhi, Apr 10 (PTI) Mining giant Vedanta Group on Friday questioned the evaluation metrics adopted by lenders of Jaiprakash Associates Ltd (JAL), which had selected the lower bid of Rs 3,400 crore from Adani Enterprises for the debt-ridden company.

During proceedings of the insolvency appellate tribunal National Company Law Appellate Tribunal (NCLAT), the counsel representing Vedanta Ltd said the "valuation in the process has been used to wipe out commercial wisdom" by the committee of creditors (CoC).

Pointing towards the evaluation matrix used by the CoC, senior advocate Abhijeet Sinha asked whether it was used "to achieve value maximisation or is it being used for some other purpose".

He submitted that the evaluation matrix, RFRP (request for resolution plan) and process note relied upon by the CoC are merely guiding tools and cannot override the core objective of the insolvency framework, which is maximisation of value.

Contending that Vedanta's bid was Rs 3,400 crore higher in gross value and Rs 500 crore in net present value (NPV) than the resolution plan submitted by the Adani Group, Sinha alleged that there was no discussion in the CoC meeting for going for a lower bid.

The CoC has appointed BTO India LLC to carry out feasibility and viability analysis of resolution plans received, which provided scoring to each of the five resolution plans as per the evaluation metrics, which does not reflect "sound exercise of commercial wisdom".

"In this, the max score is 35… out of 35, Adani gets 29.30, we get 18.51," Sinha said, adding, "Now, this is actually, we are told, the only factor which has made (the basis of the decision)... but that is also a scoring factor, which the CoC itself has also not done." For NPV, Vedanta has 35 out of 35. "The other factor where we are lower is equity, quasi-equity infusion for improving business operations within 180 days. We are 2.56 and 5," he said.

NCLAT was hearing petitions filed by Vedanta Ltd, which has challenged the selection of Adani Enterprises as the successful resolution applicant for JAL.

Vedanta's counsel argued that the CoC, after introducing a challenge process due to sub-optimal bids, approved the very plan it initially found inadequate, undermining the integrity of the process.

He alleged material irregularities and a lack of transparency in the conduct of the entire process, and argued that the design of the challenge mechanism itself was inherently unfair, as bidders were required to submit both upfront and deferred payment components but were only shown the highest NPV after each round.

Earlier on March 24, 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 the Adani Group's bid for acquiring JAL.

However, it had also said the plan would be subject to the outcome of the appeals filed by the Anil Agarwal-led Vedanta Group.

This interim order by NCLAT was challenged before the Supreme Court, which also declined to grant a stay. However, the apex court had directed that if the monitoring committee planned to take any major policy decision, it should first obtain the Tribunal's sanction.

On March 17, the NCLT, Allahabad bench, approved Adani Enterprises Ltd's Rs 14,535-crore bid to acquire JAL through the insolvency process.

Adani Enterprises had outbid Vedanta and Dalmia Bharat to win the bid for JAL. Adani got the maximum 89 per cent votes from creditors, followed by Dalmia Cement (Bharat), and Vedanta Group.

The CoC defended its decision, saying the process complied with all Insolvency and Bankruptcy Code (IBC) rules. They maintained that no bidder has a guaranteed right to win, even if it offers the highest value.

They said plans were evaluated on multiple factors, including upfront cash, feasibility, and execution, not just headline value.

JAL, which has high-quality assets and business interests spanning real estate, cement manufacturing, hospitality, power and engineering & construction, was admitted to the CIRP in June 2024 after it defaulted on payments of loans aggregating Rs 57,185 crore.

JAL has major real estate projects like Jaypee Greens in Greater Noida, a part of Jaypee Greens Wishtown in Noida (both on the outskirts of the national capital), and the Jaypee International Sports City, located near the upcoming Jewar International Airport.

It also has three commercial/industrial office spaces in Delhi-NCR, while its hotel division has five properties in Delhi-NCR, Mussoorie, and Agra.

JAL has four cement plants in Madhya Pradesh and Uttar Pradesh, and a few leased limestone mines in Madhya Pradesh.

It also has investments in subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and several other companies. PTI KRH KRH TRB

Value maximisation in insolvency bids questioned over evaluation matrix and transparency in the JAL resolution process Vedanta Group challenged the evaluation matrix and challenge process used by the committee of creditors in the insolvency resolution of Jaiprakash Associates Ltd, contending that the framework was inconsistent with value maximisation and commercial wisdom. The dispute concerned scoring methodology, the weight given to feasibility and viability analysis, and allegations that the process lacked transparency and fairness because only the highest net present value was disclosed after each round. The committee of creditors defended the selection by stating that plans were assessed on multiple factors under the Insolvency and Bankruptcy Code.