The National Company Law Appellate Tribunal (NCLAT), Chennai on Friday (September 6, 2024) ordered status quo to be maintained as on date in the matter of Corporate Insolvency Resolution Process of Coastal Energen Private Limited, based on an appeal filed against the approval of a ₹3,335.52 crore (excluding resolution process cost) resolution plan submitted by Dickey Alternative Investment Trust and Adani Power Limited consortium for the company.

NCLAT Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain directed the resolution professional Radhakrishnan Dharmarajan to run the Coastal Energen plant and maintain the resolution amount in a separate account until the case is decided on merits.

The NCLAT has posted the case for further hearing on September 18, 2024.

Interestingly, the development comes even as the Dickey Alternative Investment Trust (DAIT) and Adani Power consortium have already implemented the resolution plan and taken over Coastal Energen.

Last month, the National Company Law Tribunal (NCLT) Chennai gave the nod for Dickey Alternative Investment Trust and Adani Power resolution plan for Coastal Energen, which owns and operates an imported coal-based thermal power plant at Tuticorin, Tamil Nadu. As per the approved resolution plan, secured lenders of Coastal Energen will get about ₹3,330 crore, which is 28.52% of the admitted claims of about ₹11,677 crore.

Against the NCLT nod, Ahmed Buhari, erstwhile director of Coastal Energen, moved an appeal before the NCLAT, alleging that the due process was not followed in picking the DAIT and Adani Power consortium as the successful bidder under the insolvency and bankruptcy process.

NCLT admitted Coastal Energen for the corporate insolvency resolution process via an order dated February 4, 2022, following a case filed by the State Bank of India, and had appointed Radhakrishnan Dharmarajan as the resolution professional.

Logo of the Adani Group installed at a roundabout on the ring road in Ahmedabad, Gujarat. FILE
| Photo Credit: REUTERS

Shares of all Adani Group companies tumbled on Tuesday as the initial trend showed BJP winning a lesser number of seats than predicted in exit polls.

The stock of Adani Ports plummeted 20 per cent, Adani Energy Solutions plunged 19.80 per cent, Adani Power slumped 19.76 per cent, Ambuja Cements tumbled 19.20 per cent and the group’s flagship firm Adani Enterprises tanked 19.13 per cent on the BSE.

Erasing the record-rally of the previous trade, the 30-share BSE Sensex dropped 4,131.44 points or 5.40 per cent to 72,337.34, and the Nifty slumped 1,263.3 points or 5.43 per cent to 22,000.60.

Shares of all Adani Group companies rallied sharply on Monday, with Adani Power surging nearly 16 per cent in line with a massive surge in the equity market, taking the combined market valuation of the ten listed firms to Rs 19.42 lakh crore.

The stock of the majority of the group firms, including Adani Enterprises, Adani Ports, Adani Power and Adani Green, also bounced back to their pre-Hindenburg Research report levels on Monday.

The BJP-led NDA was ahead with leads in 296 seats and the opposition INDIA bloc not far behind in 227 seats as votes were counted for the Lok Sabha elections on Tuesday, setting the course for a third consecutive term as prime minister for Narendra Modi but with a stronger opposition.

While the BJP was ahead in 236 of 542 seats, the Congress had leads in 97, signalling a dip for the ruling party from the 303 score in 2019 and a spike for the opposition party’s 52 from the last election. An election marked by acridity and acrimony could end with the treasury benches in reduced numbers and an opposition with more teeth.

ALSO READ:Adani Group’s FY24 net jumps 55%; mulls $90-billion capex

In trends available till 11.45 am, the NDA was close to the 300 mark, comfortably over the magic figure of 272 with the opposition INDIA bloc making significant gains.

Shares of all group companies surged on Friday by up to 14 per cent after US brokerage Jefferies put a bullish view on the group that is back to an expansion spree with a planned USD 90 billion capital expenditure over the next decade.

Aam Aadmi Party MP Sanjay Singh addressing a press conference, in New Delhi, on May 22, 2023.
| Photo Credit: PTI

Aam Aadmi Party (AAP) Rajya Sabha MP Sanjay Singh on August 28 demanded action against officials and Ministers in Gujarat for an alleged excess payment made to Adani Power Mundra Limited (APMuL) over five years under two power purchase agreements.

The Gujarat government had denied the allegation after State Congress chief Shaktisinh Gohil had on August 26 raised the issue and claimed that the Bharatiya Janata Party government had made “excess payment of ₹3,900 crore” to the company.

Gujarat government spokesperson and Cabinet Minister Rushikesh Patel said the allegations were “misleading” and that the payment was only interim and not final. Addressing a press conference, Mr. Singh on Monday demanded a probe into the “corruption”.

“Where is the ED? Where is the CBI? You reach West Bengal, Telangana at the drop of a hat. But you are not able to see the corruption that is happening. It is only after the Hindenburg report that they realised that corruption was happening. How did this corruption happen? There should be action against officials and Ministers involved in this,” he said.

It has been alleged that the State-run Gujarat Urja Vikas Nigam Limited (GUVNL) paid Adani Power ₹13,802 crore between October 2018 and March 2023 even when the latter did not submit any invoice or supporting documents of coal procurement (for its power plants).

Mr. Singh produced a letter purportedly written by GUVNL, dated May 15, 2023 and addressed to Adani Power Mundra, seeking recovery of ₹3,802 crore, excess payment made by the GUVNL towards energy charges under the two Power Purchase Agreements (PPA) signed with the latter.

The logo of the Adani group is seen on the facade of one of its buildings on the outskirts of Ahmedabad. File
| Photo Credit: REUTERS

U.S.-based boutique investment firm GQG Partners has invested $1.1 billion in Adani Power for an 8.1% stake, sources with knowledge of the matter said on Wednesday.

GQG Partners bought 31 crore shares of Adani Power in the largest ever secondary market equity deal, they said, adding that promoter Adani family sold the stake for over ₹9,000 crore ($1.1 billion).