Jaiprakash Power Ventures has provided updates regarding a corporate guarantee related to Jaiprakash Associates Limited. SBI has demanded repayment and invoked the guarantee, leading to DRT proceedings. NARCL was permitted to be substituted in place of SBI, and subsequently, India Debt Resolution Company Limited (IDRCL) has demanded outstanding payments. The company views the demand as unsubstantiated and is taking legal steps. An insolvency petition filed by ICICI Bank is admitted.
Corporate Guarantee Developments
A corporate guarantee (CG) provided by Jaiprakash Power Ventures for a loan availed by Jaiprakash Associates Limited continues to be a focal point. An update indicates that the State Bank of India (SBI) sought repayment of outstanding dues and invoked the CG, initiating legal proceedings at the Debt Recovery Tribunal (DRT) in New Delhi. The company has contested its liability in the DRT proceedings.
Change in Lender and Demand for Payment
Recent developments involve a change in the lender. An order dated September 24, 2025, permitted the National Asset Reconstruction Company Limited (NARCL) to be substituted in place of SBI. Subsequently, India Debt Resolution Company Limited (IDRCL), acting as the Power of Attorney holder for NARCL, issued a letter dated October 24, 2025, demanding payment related to the aforementioned corporate guarantee.
Company’s Position and Legal Strategy
Jaiprakash Power Ventures maintains that the demand lacks substance given the ongoing sub-judice status of the matter. The company is actively pursuing legal avenues to protect its interests in response to the demand issued by IDRCL.
Insolvency Petition Update
An insolvency petition filed by ICICI Bank Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, has been admitted by the National Company Law Tribunal, Allahabad Bench on June 3, 2024.
Source: BSE
