Vedanta Informs NCLT Mumbai That SEBI Has Cleared Revised Demerger Plan; Fresh Hearing On November 12
Pranav B Prem
Anil Agarwal–led Vedanta Limited informed the National Company Law Tribunal (NCLT), Mumbai Bench on Wednesday that the Securities and Exchange Board of India (SEBI) has approved its revised demerger plan, following earlier warnings issued over disclosure and compliance lapses.
Vedanta, a diversified natural resources conglomerate, intends to demerge its aluminium, oil and gas, power, and steel businesses into separate listed entities as part of its corporate restructuring strategy.
The bench comprising Judicial Member Nilesh Sharma and Technical Member Charanjeet Singh Gulati took note of SEBI’s affidavit dated September 2, which confirmed that while the regulator had earlier issued an administrative warning on August 13, it has now granted a non-objection to the revised demerger proposal. In its warning letter, SEBI had criticized Vedanta for modifying its demerger scheme without first obtaining the regulator’s consent. However, the further hearing could not proceed as the NCLT bench was reconstituted. The new bench is scheduled to hear the matter afresh on November 12, when the Tribunal will also address objections raised by the Ministry of Petroleum and Natural Gas.
The Ministry of Petroleum and Natural Gas has expressed concerns regarding Vedanta’s management of oil and gas assets, alleging that the company failed to fully disclose third-party interests, existing liabilities, and government dues under various production-sharing contracts. The Ministry has also sought clarification on Vedanta’s ability to fulfill contractual obligations following the proposed restructuring.
Cause Title: Securities Exchange Board of India VS Vedanta Limited
Case No: IVN.P/13/2025 in C.A.(CAA)/171(MB)2024
Coram: Judicial Member Nilesh Sharma, Technical Member Charanjeet Singh Gulati
