Vedanta Ltd Chairman Anil Agarwal on Sunday broke silence on the reversal of the conglomerate’s Jaiprakash Associates bid, which was turned down by lenders last year despite the company being the highest bidder to acquire the asset.
Invoking the Gita in a statement on X, Agarwal said, “This morning, I was reading Chapter 15 of the Bhagavad Gita. One thought stayed with me. “Have courage. Stay humble. Do your duty without attachment.” Life tested this.”
He narrated the series of events with which Vedanta had originally emerged as the highest bidder for Jaiprakash Associates. “One by one, everyone dropped out of the bidding. Finally, we were declared the highest bidder publicly,” he said.
Agarwal revealed that Vedanta was informed in writing that they had won the bid to acquire Jaiprakash Associates.
“It was a transparent process. We were informed in writing that we had won. But life is never so simple. After some days, the decision was changed,” the Vedanta Chairman said.
He indicated that Vedanta will approach the “right forum” to discuss details on the decision, indicating a legal challenge at the courts.
Agarwal said that the bidding took place through a public auction conducted by the committee of creditors (CoC) under the Insolvency and Bankruptcy Code (IBC). However, he noted that multiple bidders dropped out until Vedanta placed the highest bid.
Invoking the lines from Gita, Anil Agarwal said Vedanta had no attachment to the asset and talked about fulfilling Dharma.
“We have no attachment to this asset. If it comes, it is God’s grace. If it goes, that is also his wish. But one thing we believe strongly. When something is promised in dharma, it should not be taken back. In our scriptures also, we see this again and again. Truth, commitment, and fairness are above everything.”
Referring further to Gita lessons, Agarwal said that Vedanta will follow the “right path.
“Gita gives a simple answer – do your duty, with courage, but without anger or attachment. That is what we will do. We will place the facts in the right way. We will follow the right path.”
Vedanta’s Jaiprakash Associate bid
Anil Agarwal’s statement comes after the Insolvency appellate tribunal on Tuesday declined any interim stay over the Vedanta Group’s plea against the order passed by the NCLT approving ₹14,535 crore bid by Adani Group’s bid for acquiring Jaiprakash Associates Ltd (JAL).
A two-member bench of the National Company Law Appellate Tribunal (NCLAT) sought a response from the CoC of JAL within a week, and set 10 April as the next date of hearing.
In November last year, the CoC of JAL approved the resolution plan by the Adani Group.
On 17 March, the NCLT’s Allahabad bench approved Adani Enterprises Ltd’s ₹14,535 crore bid to acquire JAL through the insolvency process.
During the proceedings of NCLAT on Tuesday, counsel representing Vedanta contended that it was declared the highest bidder by JAL’s Committee of Creditors. Vedanta’s bid value was ₹16,726 crore, and Adani Enterprises’ bid was ₹14,535 crore, as per a PTI report.
The CoC, however, 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.
- The bidding process for Jaiprakash Associates highlights the complexities of the Insolvency and Bankruptcy Code.
- Agarwal’s invocation of the Gita underscores a philosophical approach to business challenges.
- Legal recourse may be pursued by Vedanta as they seek clarity on the bid reversal.
