The Indian Government has raised objections to mining company Vedanta’s planned restructuring into four new entities, expressing concerns that the demerger could affect its ability to recover dues, as reported by CNBC-TV18.
During a hearing at the National Company Law Tribunal (NCLT), the government accused Vedanta of altering the demerger scheme post-approval from the Securities and Exchange Board of India (SEBI).
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The NCLT, which oversees corporate disputes, has not yet confirmed the details of the proceedings.
Vedanta has submitted a detailed response to the government’s allegations but has not disclosed further information.
The exact amount of dues claimed by the government has not been disclosed. Vedanta has informed the tribunal that it will issue a corporate guarantee to the Ministry of Petroleum and Natural Gas to ensure the recovery of the outstanding dues, reported Reuters.
In December, Vedanta announced its intention to split into four new listed companies, revising an earlier plan to create six separate entities. The government’s legal counsel accused Vedanta of hiding critical information regarding the demerger, including “inflated revenues” and “concealed liabilities,” as per the report.
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By GlobalDataEarlier this month, Vedanta acknowledged receiving a warning letter from the SEBI about certain non-compliances but did not address the government’s allegations in its statement. The next hearing at the NCLT has been scheduled for 17 September.
In July, Zambia-based Konkola Copper Mines, a unit of Vedanta Resources, announced a comprehensive refurbishment of its smelter as part of a broader initiative to enhance production capabilities.
