UltraTech and JAL Settle High-Stakes Dalla Super Dispute

UltraTech Cement and Jaiprakash Associates Ltd (JAL) have reached a settlement in their arbitration dispute concerning the Dalla Super unit and associated mines. The resolution will aid JAL's Corporate Insolvency Resolution Process, where rival Adani Group is the successful bidder, pending tribunal approval.

In a significant development within the cement industry, UltraTech Cement has resolved its arbitration dispute with Jaiprakash Associates Ltd (JAL) over the Dalla Super unit and connected mines. UltraTech announced on Thursday that Series A Redeemable Preference Shares, totaling Rs 1,000 crore, which had been held in escrow, have been released as part of the settlement.

This agreement concludes the prolonged contention between UltraTech and the financially distressed JAL, allowing UltraTech full rights and interests in the Dalla Super assets. The settlement comes amidst JAL's ongoing Corporate Insolvency Resolution Process, wherein the Adani Group was declared the successful bidder at Rs 14,535 crore, though its approval faces a challenge by Vedanta Group at NCLAT.

Originally acquired by UltraTech in 2017, the Dalla Super unit was part of a strategic expansion plan sanctioned by the National Company Law Tribunals of Mumbai and Allahabad. The resolution signifies a crucial turning point, facilitating JAL's monetization efforts and UltraTech's continued leadership in the industry.

(With inputs from agencies.)