Relief for thousands of homebuyers has emerged as a key feature of the resolution plan for Jaiprakash Associates Limited approved by the National Company Law Tribunal, with the proposal offering a mix of flat delivery and limited financial recovery.
Under the plan submitted by Adani Enterprises Limited, homebuyers—classified as financial creditors in a class — will not receive a uniform cash payout. Instead, they are being offered two primary options -- Delivery of housing units, wherever projects are viable and eligible; or exit option, under which the Adani Group would return the actual purchase price paid by the homebuyer. No refund of any penalty or late payment or other similar penal charges would be made. All such payments would be made along with interest as per the Allahabad HC Judgment, to the extent applicable.
For buyers in the high-profile Sports City project, homebuyers would be refunded the actual price paid minus any sums already paid by YEIDA (Yamuna Expressway Industrial Development Authority) as per the Allahabad HC Judgement.
Under the approved resolution plan, Adani Enterprises has proposed total payments exceeding Rs 13,500 crore to secured financial creditors. This includes Rs 6,005 crore as upfront payment on the effective date, and Rs 6,026.5 crore to be paid within two years. Apart from this, Adani group will issue non-convertible debentures (NCDs) to secured financial creditors with a put/call option of Rs 1,500 crore
Workmen and employees will receive at least Rs 10 crore or their statutory dues, whichever is higher. Yamuna Expressway Industrial Development Authority is to be paid Rs 1,067 crore, subject to legal outcomes related to the Sports City project.
A key feature of the plan is a complete capital restructuring. All existing shares—equity, preference, and convertible instruments—will be cancelled with zero compensation to shareholders.
Post-restructuring, the Adani Group (through an implementing entity) will hold 100% equity in Jaiprakash Associates. The company will also be delisted from stock exchanges, with the exit price for public shareholders fixed at nil due to inadequate liquidation value.
The Adani Group has committed to infuse up to Rs 800 crore within 180 days of approval towards working capital, capital expenditure and operational improvements.