Indian Govt Challenges Vedanta’s Four-Way Demerger Over Dues Concerns
India Objects to Vedanta’s Demerger Plan, Citing Risks to Dues Recovery
The Indian Government has raised objections to mining giant Vedanta’s planned restructuring into four separate listed entities, warning that the move could hinder its ability to recover outstanding dues, according to a report by CNBC-TV18.
During a hearing at the National Company Law Tribunal (NCLT), government representatives alleged that Vedanta altered its demerger scheme after receiving approval from the Securities and Exchange Board of India (SEBI).
The NCLT, which adjudicates corporate disputes, has not yet released official details of the proceedings.
Vedanta has filed a detailed response rejecting the allegations but has not disclosed further information.
The company told the tribunal that it is prepared to issue a corporate guarantee to the Ministry of Petroleum and Natural Gas to secure repayment of any dues, according to Reuters. The exact amount owed remains undisclosed.
In December 2024, Vedanta announced plans to split into four new listed companies, revising its earlier proposal to create six separate entities.
The government’s legal counsel, however, accused Vedanta of withholding critical details about the demerger, including claims of inflated revenues and concealed liabilities.
Earlier this month, Vedanta confirmed that it had received a warning letter from SEBI regarding certain compliance lapses but did not address the government’s allegations.
The next NCLT hearing is scheduled for 17 September.
Separately, in July 2025, Vedanta’s Zambian unit, Konkola Copper Mines (KCM), announced a refurbishment of its smelter as part of efforts to boost production capacity.
