The Competition Commission of India (CCI) has approved Dalmia Cement (Bharat) Limited’s plan to buy 100% of Jaiprakash Associates Limited (JAL). JAL is currently going through insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), 2016.

This approval is an important step, but the final decision will be made by the committee of creditors (CoC), which has not yet chosen the winning bidder. CCI said a detailed order will be shared later.

The acquisition is part of the corporate insolvency resolution process (CIRP). Dalmia Cement is a subsidiary of Dalmia Bharat Limited (DBL), the main company of the Dalmia Bharat Group, which focuses on cement manufacturing and sales.

JAL is a large conglomerate with businesses in real estate, cement, hospitality, and engineering. It entered insolvency proceedings on June 3, 2024.

Besides Dalmia, other companies in the race to acquire JAL include the Adani Group (whose approval from CCI is still pending), Vedanta Group, Jindal Steel & Power Ltd (JSPL), and PNC Infratech. Lenders recently asked all bidders to submit revised proposals without conditions and with clear bid amounts.

However, many bids are affected by a legal dispute over JAL’s 1,000-hectare Sports City project in Greater Noida. In March, the Allahabad High Court supported the Yamuna Expressway Industrial Development Authority’s (Yeida) decision to cancel the land allotment. The case is now before the Supreme Court.

Recently, the Supreme Court ruled that bidders must secure CCI approval before seeking clearance from the CoC. The Ministry of Corporate Affairs may soon propose changes to the IBC to relax this rule and allow bids without prior antitrust approval.