View of the Vedanta office building in Mumbai. File
| Photo Credit: Reuters
The National Company Law Appellate Tribunal (NCLAT) on Thursday (May 29, 2025) granted an interim stay on the National Company Law Tribunal’s (NCLT) order rejecting part of Vedanta Ltd’s proposed demerger of its various businesses.
The diversified natural resources conglomerate Vedanta Ltd. decided to retain its Base Metals business and proposed to demerge 4 businesses into respective subsidiary companies, namely Vedanta Aluminium Metal Ltd., Talwandi Sabo Power Ltd. (TSPL), Malco Energy Ltd. and Vedanta Iron and Steel Ltd.
In March, NCLT Mumbai rejected the demerger of Vedanta’s power business and its merger with the resulting company TSPL, citing insufficient debt disclosure, after China’s Sepco Electric Power Construction Corporation (Sepco) objected to the proposal over its debt of ₹1,245 crore.
TSPL had moved NCLAT against the NCLT order.
“The issues raised before us need to be considered at length and presently in view of the submissions made, the scheme is severable and thus in case the stay is not granted to the impugned order, it may affect the second motion application filed in respect of other three transferor companies pending in different tribunals,” the NCLAT said in its order dated May 27.
The NCLAT also asked TSPL to provide a bank guarantee of ₹1,245 crore to protect the interest of Sepco, within two weeks.
The NCLAT stayed the portion of the scheme rejected by the NCLT till the next date of hearing. It posted the case for hearing on August 4 hearing.
Post the interim stay, Vedanta on Thursday said it remains committed to its strategic reorganisation plan and continues to work toward unlocking long-term value for all stakeholders.
Published – May 29, 2025 04:09 pm IST
