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The National Asset Reconstruction Company of India (NARCL) has put forth a groundbreaking proposal to acquire the debt of Jaiprakash Associates from banks for a staggering ?10,000 crore. This marks the largest offer to date by the government-backed asset reconstruction company (ARC), which commenced operations just over two years ago. If a majority of lenders agree to sell their debt, NARCL will acquire Jaiprakash Associates Ltd (JAL)'s various businesses spanning cement, hospitality, real estate, fertiliser, and construction sectors. JAL, a flagship company of the Jaypee Group led by Manoj Gaur, is at the center of this significant transaction. In the fiscal year 2023, NARCL successfully acquired 62% of Jaypee Infratech's debt, offering lenders a notable 39% recovery through an uncontested Swiss challenge auction. Among the major lenders to JAL, State Bank of India holds the largest debt share at 26%, followed by ICICI Bank at 19%, and IDBI Bank at 11%. As of March 2023, the company's total principal outstanding debt stood at ?17,700 crore. Notably, NARCL's offer of ?10,000 crore excludes the debt held by Ares SSG Capital-backed Asset Care & Reconstruction Enterprises (ACRE). The government-backed ARC has been actively pursuing distressed assets in recent months, with this proposed deal marking its most substantial acquisition to date. Over the past three months, NARCL has either acquired or is in the process of acquiring at least a dozen such loan accounts. Jaiprakash Associates is one of the 28 accounts directed by the Reserve Bank of India to be resolved under the Insolvency and Bankruptcy Code in 2017. While IDBI Bank initiated the resolution process at the National Company Law Tribunal (NCLT), SBI filed a separate petition in September 2022. However, the NCLT has yet to admit these pleas, as negotiations for an out-of-court settlement between the promoters and lenders continue. This proposed acquisition by NARCL not only signifies a significant step in resolving distressed assets but also underscores the ongoing efforts to streamline the Indian banking sector.