Centre raises objection to Vedanta's demerger over 'concealment', Sebi warning for modifying Scheme of Arrangement

The Centre has raised 'serious objections' to Vedanta's demerger and has cited 'concealment and non-disclosure' of details, with the National Company Law Tribunal (NCLT) pushing back the hearing on the matter just days after Sebi issued an administrative warning to the Anil Agarwal-led company over modifying the Scheme of Arrangement without consent from the regulator.

Shares of Vedanta fell sharply after the NCLT's decision to defer the demerger case hearing to September 17, triggering worries of further delay to the process, as two key hurdles have appeared to the business restructuring.

CNBC-TV18 reported that the Centre has said that the government will not be able to recover dues if the demerger is followed through, and that there has 'concealment' and non-disclosure of key details. The mining major had 'inflated revenue' and 'concealed liabilities', the Centre informed the NCLT.

Vedanta had on August 14 confirmed that it received an administrative warning from Sebi over modification to the Scheme of Arrangement without prior written consent of Sebi. The company has been advised by the regulator to exercise caution in future, and share the board’s comments on the administrative warning, along with corrective actions that will be undertaken.