NCLT reserves order on Vedanta's plea for demerger, govt's objections to it
This story was originally published at 16:47 IST on 12 November 2025
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--NCLT reserves order on Vedanta's demerger plea, govt's objections to it
NEW DELHI – The Mumbai bench of the National Company Law Tribunal Wednesday reserved its order on Vedanta Ltd.'s plea seeking approval for a proposed demerger of the company and the government's objections to the demerger scheme. On Sept. 30, Vedanta had said it had extended the deadline to implement its demerger scheme by six months to Mar. 31, citing delay in approvals from the Mumbai bench of the National Company Law Tribunal and other government authorities.
Vedanta has proposed the demerger of its aluminium, oil and gas, and iron ore and steel businesses into separate companies - Vedanta Aluminium Metal Ltd., Malco Energy Ltd., and Vedanta Iron and Steel Ltd. The company had filed a separate application with the National Company Law Tribunal for demerging the power business into Talwindo Sabo Power Ltd. According to Vedanta, the proposed demerger "is a strategic step to unlock long-term value by creating sector-focused, pure-play businesses with independent management teams."
The government had opposed the merger, saying the company had concealed and failed to disclose key details. The government also flagged concerns over inflated revenue and concealed liabilities of the company. In its response, Vedanta had said it will issue a corporate guarantee in favour of the petroleum and natural gas ministry "once the (demerger) scheme becomes effective". The corporate guarantee will be in place if Vedanta's subsidiary, Malco Energy, is unable to meet or satisfy any potential contractual liability, if any, towards the petroleum and natural gas ministry under the production sharing contracts and revenue sharing contracts related to oil and gas blocks, Vedanta had said. Meanwhile, the Securities and Exchange Board of India, which had earlier issued a warning letter to Vedanta about its demerger proposal, had now approved the demerger scheme, the regulator had told the tribunal last month.
On Wednesday, shares of Vedanta ended 0.6% lower at INR 520.60 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Tanima Banerjee
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