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The restructuring of Vedanta Limited's proposed demerger has been delayed again after the National Company Law Tribunal (NCLT) Mumbai bench was reconstituted, pushing the matter to be heard on November 12. The company informed the tribunal that the Securities and Exchange Board of India (SEBI) has cleared its revised scheme, which no longer separates the base-metals business from the parent. The Ministry of Petroleum and Natural Gas (MoPNG) has raised objections regarding disclosures in Vedanta's plan. Earlier this year the demerger approval deadline had already been extended due to pending regulatory approvals.
The demerger proposal by Vedanta has run into another procedural roadblock. The NCLT's Mumbai bench has been reconstituted, which means the entire matter will be re-heard by the new panel when it convenes on November 12. The fresh hearing will revisit the company's scheme of arrangement and give the ministry an opportunity to present its objections. Advertisement
In a filing before the tribunal, Vedanta's counsel said that SEBI has granted its non-objection to the modified demerger plan after earlier issuing a warning over undisclosed changes.
The original scheme, submitted earlier this year, covered four of Vedanta's group companies: Vedanta Aluminium Metal & Mining Company Limited, Talwandi Sabo Power Limited, Malco Energy Limited and Vedanta Iron & Steel Limited, along with their shareholders and creditors. The MoPNG objected to the scheme, seeking clarity on certain disclosure and contractual aspects.
Earlier, Vedanta had proposed to split into six separate entities covering aluminium, oil & gas, power, steel & ferrous materials, base metals and the residual parent company. Under the revised scheme the base-metals business remains with the parent company, changing the original blueprint.
Back in March, Vedanta had already extended the deadline for completing the demerger to the end of September 2025 due to delays in receiving NCLT and government approvals. Although the company had aimed for earlier completion, this latest bench reshuffle means further postponement.
Source PTI
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