Adani Group has paid nearly ₹6,000 crore to lenders of debt-laden Jaiprakash Associates as the first installment under its ₹14,535 crore resolution plan, marking a significant step in one of India’s prolonged insolvency proceedings.

The payment, made on Thursday through Adani’s internal accruals, follows the completion of legal formalities after the National Company Law Appellate Tribunal (NCLAT) dismissed a challenge filed by rival bidder Vedanta Group. The move effectively cleared the final hurdle for implementation of the approved resolution plan, the Economic Times reported.

The transfer brought long-awaited relief to lenders who have been awaiting recoveries for years. “It was a major day for creditors as a substantial amount was received after a prolonged delay,” sources told ET.

The insolvency process involving Jaiprakash Associates has been underway for several years, with the company formally entering the Corporate Insolvency Resolution Process (CIRP) in June 2024. The Allahabad bench of the National Company Law Tribunal (NCLT) approved Adani Enterprises’ bid on March 17, 2026.

National Asset Reconstruction Company Ltd (NARCL) remains the largest creditor, holding 85.43% of Jaiprakash Associates’ admitted debt. Other creditors include Asset Care & Reconstruction Enterprise (ACRE), Axis Bank, State Bank of India, The Bank of New York Mellon, ARCIL and several other lenders.

Under the approved structure, ₹6,000 crore was required to be distributed within 90 days of plan approval toward repayment of secured financial creditors. A second payment of ₹6,026 crore is scheduled to be made two years after approval.

Apart from cash payouts, secured creditors are also set to receive ₹1,500 crore in non-convertible debentures (NCDs) featuring a put option, allowing lenders to seek redemption at face value within a specified timeline. Adani will also retain the option to redeem these instruments under defined conditions.

The NCDs are backed by guarantees from listed Adani group entities, adding further security for lenders.

While the overall resolution bid stands at ₹14,535 crore, financial creditors are expected to recover approximately ₹13,500 crore. The remaining amount is earmarked for insolvency process expenses, operational creditors and other statutory obligations.

The transaction marks a major development in resolving Jaiprakash Associates’ debt burden and provides a crucial recovery milestone for lenders involved in the case.

Published on: May 23, 2026 8:42 AM IST