Demerger of Subsidiary
NCLAT sets aside NCLT order on Vedanta's Talwandi Sabo following settlement
This story was originally published at 19:55 IST on 16 September 2025
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--Vedanta: NCLAT sets aside NCLT order rejecting Talwandi Sabo demerger scheme
NEW DELHI – Vedanta Ltd. Tuesday said the National Company Law Appellate Tribunal has set aside the National Company Law Tribunal's order rejecting the scheme of arrangement for the demerger of its wholly-owned subsidiary Talwandi Sabo Power Ltd., following a settlement between Talwandi Sabo Power and Sepco Electric Power Construction Corp.
The appellate tribunal also disposed of the appeal by Talwandi Sabo Power against the NCLT order, according to a filing by Vedanta to stock exchanges. Since Talwandi Sabo and Sepco Electric Power Construction have arrived at a settlement, the appeal was disposed of, the NCLAT said in its order.
The NCLT had rejected the demerger scheme on account of failure to disclose the debt owed to Sepco Electric Power Construction Corp.
The appellate tribunal said in its order on Monday that "during the pendency of the appeal, the matter has been amicably settled between the parties." The appellate tribunal said Sepco filed an affidavit specifying it had entered into a settlement with Talwandi Sabo wherein it provided consent and no objection to the approval of the demerger scheme. While disposing of the appeal, the parties will be bound by the settlement arrived at on Sept. 11, the order said.
The appellate tribunal directed the National Company Law Tribunal to proceed with the demerger application and decide on convening or dispensing with the meetings within a week.
Tuesday, shares of Vedanta ended at INR 461.30 on the National Stock Exchange, up 1.5% from the previous close. End
Reported by Rajesh Gajra
Edited by Saji George Titus
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