Vedanta share price falls as Supreme Court rejects Talwandi Sabo's plea; NCLT defers demerger hearing
According to a report by business news channel CNBC TV-18, the National Company Law Tribunal (NCLT) has deferred hearing on the group's proposed demerger to September 17, after the central government raised 'serious objections.'
The government argued that the scheme involved concealment of key details, inflated revenues and concealed liabilities, which could impair the recovery of dues, CNBC-TV18 reported.
In parallel, the Securities and Exchange Board of India (SEBI) has flagged Vedanta for modifying its demerger scheme after receiving a No-Objection Certificate (NoC) from SEBI and stock exchanges. The regulator termed the move a 'serious breach' of its master circular and issued an administrative warning to Vedanta, the report added.
Meanwhile, in another development, the Supreme Court (SC) has dismissed a plea by the Vedanta Group seeking additional compensation for its Punjab-based Talwandi Sabo Power project.
Talwandi Sabo Power Ltd (TSPL), a wholly-owned subsidiary of Vedanta, had filed a petition before the Supreme Court challenging the entitlement to Foreign Trade Policy benefits on account of mega power status.
The company had approached the apex court challenging the withdrawal of 'deemed export' benefits and sought higher compensation.
The Supreme Court on, August 19, upheld the Appellate Tribunal for Electricity's (APTEL) order, ruling that Talwandi Sabo was never legitimately entitled to such benefits. This effectively closes the door on any additional financial relief from the project.
'We have taken note of the Hon'ble Supreme Court judgment and we are reviewing the judgement and evaluating the next steps, including legal options available to us,' Vedanta said in a regulatory filing on August 20.
Earlier, the National Company Law Tribunal (NCLT) had also rejected the proposed demerger of Talwandi Sabo Power Ltd. The SC ruling effectively closes the door on additional financial inflows from Talwandi Sabo, tightening the company's legal and financial options.
At 1:05 PM, Vedanta share price was trading 2.40% lower at ₹ 439.30 apiece on the BSE.
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