NCLT is looking for Vedanta reply to Petroleum Ministry Flags Co's Demerger Plan

Mumbai: The Mumbai Bank of the National Company Law Tribunal (NCLT) on Wednesday asked Vedanta Ltd to object within four weeks of the Union Ministery of Petroleum and Natural Gas, objected to the upcoming Demerger, which may have delayed the process and uncertainties in the company. The case, heard by a Bank of Justices Mohan Prasad Tiwari and Charanjeet Singh Gulati, will be listed next September 17. A delayed timeline The development can push the timeline for Vedanta’s Demerger back. In September 2023, the company first announced its plan to enter into six separate listed entities. It aimed to complete the Demerger by March 2025. However, last December he estimated that the Demerger would be delayed until September 2025 due to pending regulatory approval-especially of the NCLT. A Vedanta spokeswoman confirmed that the Petroleum Ministry had submitted a representation before the NCLT. “Furthermore, in his affidavit, Sebi (Securities and Exchange Board of India) confirmed that he had no further comment on the merits of the (Demerger) scheme, and that the tribunal may continue to judge the matter. Vedanta also received NOC (no objection certificate) of the share exchanges on the amended scheme. Mint could not, independently, determine the details of the objections of the Petroleum ministry. However, a person who is aware of the case said a person’s permission for the Demerger views. Shares of Vedanta Ltd set 1% lower at £ 445.45 per piece on the BSE on Wednesday. On August 13, Sebi issued an administrative warning to Vedanta, according to the regulatory revelations made by the company. The market regulator said the company had changed or changed its Demerger plan after receiving a no-object certificate from the BSE without the written consent of Sebi. The changes relate to the now canceled dismantling of its base metal business. Originally, the company planned to withdraw in six separate listed entities. In December last year, however, he decided to retain the basic metal business in the parent company and changed the Demerger plan to five companies. The five firms will be Vedanta aluminum, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron and Steel and Vedanta Ltd, which will continue as the parent entity and the shares of Hindustan Zinc. Vedanta shareholders will receive one share in each of the new businesses. “The above-mentioned non-compliance was considered serious. As a result, the company is hereby warned and advised to be careful in the future to avoid repetitions of such dilapidated,” Sebi wrote in his letter, a copy of which was loaded by Vedanta Ltd on the stock exchanges. The letter did not mention what the change or amendment to the Demerger plan was. The court asked Sebi to submit his affidavit within two weeks. Earlier, Viceroy Research, a US short selling firm, accused Vedanta Group of alleged financial misconduct and misrepresentation, making empty promises to raise stock prices, manipulating asset values, increasing loans beyond balance and problems with corporate governance. The short seller first published Vedanta on July 9 and has since published 21 notes on the Vedanta group. Viceroy has a short position against London Vedanta Group’s holding company Vedanta Resources’ effects. It is alleged that they have no exposure to the group’s two listed firms in India.