Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The NCLT has deferred Vedanta's demerger hearing to October 8 following objections from the Ministry of Petroleum and Natural Gas over disclosure gaps, particularly relating to the RJ-ON-90/1 oil and gas block and loans secured against exploration assets. Vedanta maintains it has fulfilled all requirements and pointed to NCLAT's recent clearance of its restructuring plan for its power and metal units. Sepco's earlier dispute over a debt of INR 1,251 crore has been settled, removing one hurdle. However, investor concerns remain, reflected in a decline in Vedanta's share price.
The National Company Law Tribunal (NCLT), Mumbai bench, has postponed the hearing on Vedanta's proposed demerger to October 8 after the Ministry of Petroleum and Natural Gas raised objections about incomplete disclosures. The tribunal directed both Vedanta and the ministry to file written submissions within five days before the next hearing. Advertisement
The ministry's counsel pointed out that further clarity was needed on the RJ-ON-90/1 oil and gas block in Rajasthan. They also sought information on loans raised using Vedanta's exploration assets as security and highlighted concerns around possible concealment of facts. The counsel told the tribunal that, as a regulator and creditor, it was their duty to ensure whether the scheme was transparent or not.
Vedanta's counsel, in response, said that the company had complied with all disclosure requirements. They also informed the bench that the National Company Law Appellate Tribunal (NCLAT) had recently approved its plan to restructure power and metal businesses, including Talwandi Sabo Power, after a settlement with EPC contractor Sepco cleared procedural issues.
Sepco Electric Power Construction Corporation had earlier alleged that Vedanta and Talwandi Sabo Power had not disclosed a debt of around INR 1,251 crore related to EPC disputes, which could affect valuations. However, Sepco withdrew its intervention application after both sides reached a settlement earlier this month.
This is not the first time the hearing has been deferred. In the past month, the tribunal had pushed back proceedings as SEBI was yet to finish reviewing the proposal and the petroleum ministry sought additional time to present its observations. While SEBI has not raised any objections to the demerger, it asked for more details on the proposed base metals carve-out. That plan has since been dropped, with Vedanta choosing to retain the base metals business under the parent company.
Vedanta's demerger plan now covers Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, and Vedanta Iron and Steel, along with their shareholders and creditors. The company has stated that the revised structure was designed to simplify operations, sharpen management focus, and create value for investors.
The company's shares reacted to the uncertainty, falling nearly 4 percent during trading hours and closing the day lower by about 1 to 1.3 percent. Market participants said the deferment added to concerns about possible delays in completing the demerger.
Source PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
