NARCL emerges as sole bidder for Jaiprakash Associates’ ₹12,000 crore loan auction

The National Asset Reconstruction Company Ltd (NARCL) on Tuesday (January 14) has emerged as the sole bidder to acquire Jaiprakash Associates Ltd’s (JAL) loans, valued at ₹12,000 crore, from its lenders, sources privy to the developments told CNBC-TV18.

Sources close to the development said that no other bidders participated in the Swiss Challenge auction conducted on January 14, 2025, by IDBI Capital on behalf of an SBI-led consortium.

NARCL’s offer, which served as the reserve price for the auction, includes a payment structure of 15% upfront cash and 85% in security receipts, sources in the know told CNBC-TV18.

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With no competing bids, lenders will now consider NARCL’s offer and proceed with seeking approvals from their respective boards or committees for the loan sale, said people familiar with the matter. Jaiprakash Associates has admitted claims totalling ₹52,073.79 crore under the Insolvency and Bankruptcy Code (IBC).

The resolution of Jaiprakash Associates has been stuck for over seven years since RBI first identified it as one of the large stressed accounts to be sent to the NCLT for resolution under the insolvency and bankruptcy proceedings in 2017.

JAL was finally admitted into the NCLT last year in June and is facing claims of ₹52,073.79 crore from 22 lenders. While that process runs in parallel and is already facing litigation-related delays, lenders are losing patience and therefore looking to offload the asset to an ARC for faster recovery.

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