JP Power Ventures updates on corporate guarantee dispute with NARCL/IDRCL
JP Power Ventures provides updates on its corporate guarantee dispute. NARCL, through IDRCL, has demanded payment, but JPPOWER is contesting, citing the matter is sub-judice. Promoter company JAL also faces insolvency.
The potential financial liability arising from the corporate guarantee, if ruled against JPPOWER, could be substantial. The continued legal battles and the financial distress of the promoter company represent a high-impact risk to JPPOWER's financial health and operational stability.
The ongoing legal dispute regarding a corporate guarantee, the invocation of the guarantee, the substitution of lenders, and the fresh demand for payment create significant financial uncertainty and potential liability for JPPOWER. Additionally, the insolvency petition admitted against its promoter company, JAL, adds to the negative outlook.
Jaiprakash Power Ventures Limited (JPPOWER) has provided updates regarding an ongoing dispute over a corporate guarantee (CG) provided for a loan availed by its promoter company, Jaiprakash Associates Limited (JAL). * JPPOWER had provided a corporate guarantee for a loan taken by JAL. A Framework Agreement dated April 18, 2018, between lenders (including SBI) and JPPOWER, stated that State Bank of India (SBI) would release this corporate guarantee. * Despite this, SBI issued a Demand and Recall Notice on December 27, 2023, invoking the CG and demanding repayment of outstanding dues from JAL and JPPOWER. SBI subsequently took the matter to the Debt Recovery Tribunal (DRT), New Delhi. * JPPOWER has represented in the DRT that it is not liable for the dues under the CG, and the matter remains sub-judice. * Separately, on June 3, 2024, the National Company Law Tribunal (NCLT), Allahabad Bench, admitted an insolvency petition filed by ICICI Bank Limited against JAL. * Through a Joint Assignment Agreement dated March 11, 2025, certain lenders, including SBI, assigned their debts, including the CG, to National Asset Reconstruction Company Limited (NARCL). * On September 24, 2025, the DRT permitted NARCL to be substituted in place of SBI in the ongoing proceedings. * Subsequently, on October 24, 2025, India Debt Resolution Company Limited (IDRCL), acting as Power of Attorney holder for NARCL, issued a fresh demand for the outstanding dues related to the CG. * JPPOWER maintains that since the matter is still sub-judice, this new demand from IDRCL lacks substance, and the company is initiating suitable legal steps to protect its interests.
What to do with a filing like this
Jaiprakash Power Ventures Limited filed this with the NSE as a statutory disclosure, categorised under litigation updates. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Jaiprakash Power Ventures Limited. Read the original for the full detail.