UltraTech settles dispute with Jaiprakash over Dalla Super unit and mines

Leading cement maker UltraTech Cement on Thursday said it has settled with Jaiprakash Associates Ltd (JAL) in the arbitration dispute over the Dalla Super unit and associated mines.

In a regulatory filing, UltraTech Cements said 1,00,000 Series A Redeemable Preference Shares (Series A RPS) of face value ₹1,00,000 each, totalling ₹1,000 crore, put in an escrow account for Dalla Super unit and mines situated in Uttar Pradesh have been released.

This settlement will also help monetise JAL's assets in its ongoing Corporate Insolvency Resolution Process (CIRP), in which the rival Adani Group has emerged as the successful resolution applicant (bidder).

Adani Group, which is also the second-largest cement maker after Ultratech, had offered ₹14,535 crore to acquire JAL in the CIRP. However, approval of Adani's bid is contested by Vedanta Group before the insolvency appellate tribunal NCLAT.

UltraTech competes with the Adani group in the cement business, which is also rapidly building capacities through acquisitions and organic expansion at existing plants.

With this settlement, a long-standing dispute between UltraTech and debt-ridden JAL, which is currently going through insolvency resolution, has come to an end.

"Subsequent to the Parties reaching a settlement in respect of the arbitration and the Arbitral Tribunal passing a final award today viz. 26th March, 2026, all rights and interests in the Dalla Super unit and mines have fully vested in the company, and all claims/proceeds and liabilities relating to the Series A RPS stand fully discharged," the UltraTech filing noted.

Dalla Super unit and associated mines were acquired by UltraTech in 2017, pursuant to a scheme of arrangement sanctioned by the National Company Law Tribunal (NCLT) bench at Mumbai on 15.02.2017 and NCLT bench at Allahabad on 02.03.2017.

The scheme was made effective from 29.06.2017 by the resolutions passed at the meeting of the Board of Directors of UltraTech and JAL held on 29.06.2017, respectively.

UltraTech had issued "escrow 1,00,000 Series A Redeemable Preference Shares of face value ₹1,00,000 each in June 2017, which were to be released upon satisfaction of conditions relating to the Dalla Super unit and mines situated in Uttar Pradesh.

However, due to certain disputes between the Parties, the matter was referred to arbitration.

JAL had acquired the Dalla assets along with its captive mines in 2007, through the sale of assets of Uttar Pradesh State Cement Corporation Limited (UPSCCL), which was being liquidated by the High Court of Allahabad.

JAL, with a bid of ₹459 crore, was declared the highest bidder for bids invited for the sale of assets of the cement plants of UPSCCL located at Dalla, Churk & Gurma in District Sonebhadra and Chunar in District Mirzapur through a global tender.

It has six mines, namely Kajrahat, Ningha, Gurma, Julgul, Bhalua, and Bari. JAL had increased the clinker capacity of the acquired plant from 0.50 to 2.0 MTPA by installing a new clinkrisation unit.