UltraTech Settles Dispute Over Dalla Super Unit

New Delhi, Mar 26 (PTI) Leading cement maker UltraTech Cement on Thursday said it has settled with Jaiprakash Associates Ltd (JAL) in the ongoing arbitration over the Dalla Super unit and associated mines.

In a regulatory filing, UltraTech Cements said it will redeem 1,00,000 Series A Preference Shares of face value Rs 1,00,000 each totalling Rs 1,000 crore.

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

With this, 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 Rs 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 Rs 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.