JAL insolvency: Jaiprakash Infratech to challenge bid rejection in court

Jaiprakash Infratech plans legal challenge after lenders reject its bid for Jaiprakash Associates citing EMD issues, threatening delay in the ₹57,000 crore resolution process

Jaiprakash Infratech Ltd, the New Delhi-based real estate firm, is preparing to challenge in court the rejection of its bid to acquire Jaiprakash Associates Ltd (JAL), potentially dragging the bankrupt cement and infrastructure major's resolution into further delay.

 

Lenders of JAL had turned down Jaiprakash Infratech’s offer, citing an insufficient earnest money deposit (EMD), according to people familiar with the matter.

 

The company had proposed a lien over fixed deposits in lieu of the ₹100 crore deposit, but the bid was rejected for not submitting the amount in the prescribed format and for delays in filing the offer.

 

“The lien