The company said the insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) will be withdrawn once all the conditions of the settlement terms are fulfilled. The company will keep the stock exchanges informed about further developments.

In February 2026, the company had informed that NARCL had filed an application before the NCLT, Allahabad Bench, for initiation of Corporate Insolvency Resolution Process (CIRP) against the company under Section 7 of the Insolvency and Bankruptcy Code, 2016.

NARCL had alleged a default of Rs 511.73 crore, plus interest and other charges, relating to a corporate guarantee provided by Jaiprakash Power Ventures for Jaiprakash Associates. The company had also said that a similar matter was under dispute before the Debt Recovery Tribunal-III, Delhi. At the time, the NCLT application had not yet come up for hearing.

Jaiprakash Power Ventures develops and operates power projects in India. Following implementation of Jaiprakash Associates' approved resolution plan, Adani Power acquired JAL's 24% stake in Jaiprakash Power Ventures effective 21 May 2026.

The company operates the 400 MW Vishnuprayag hydroelectric project and two thermal power projects in Madhya Pradesh - the 500 MW Bina Thermal Power Plant and the 1,320 MW Nigrie Super Thermal Power Project.

On a consolidated basis, Jaiprakash Power Ventures' net profit surged 68.57% to Rs 468.84 crore while net sales rose 12.16% to Rs 1775.70 crore in Q1 June 2026 over Q1 June 2025.