Vedanta Gains Temporary Relief in Demerger Case as NCLAT Stays NCLT Orders
The National Company Law Appellate Tribunal (NCLAT) has stayed orders by the National Company Law Tribunal (NCLT) that rejected Vedanta's demerger scheme involving Talwandi Sabo Power Ltd. The stay allows Vedanta to proceed with plans to list three other subsidiaries despite objections from creditor SEPCO.
- Country:
- India
In a significant development, the National Company Law Appellate Tribunal (NCLAT) has provided temporary relief to Vedanta Ltd by staying the orders of the National Company Law Tribunal (NCLT) that challenged the demerger and listing of its subsidiaries.
The Mumbai bench of NCLT had previously rejected Vedanta's petition related to its arrangement with Talwandi Sabo Power Ltd (TSPL), citing non-disclosure of key facts about its debt, which contradicted Companies Act regulations. Vedanta swiftly appealed, leading to NCLAT's stay on the NCLT decision until August 4, 2025.
NCLAT agreed to a bank guarantee proposal of Rs 1,245 crore claimed by creditor Sepco Electric Power Construction Corporation, ensuring protection of creditor rights. This move permits further examination of the matter in detail during the next hearing.
(With inputs from agencies.)
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- Vedanta
- NCLAT
- NCLT
- demerger
- Tribunal
- TSPL
- SEPCO
- appeal
- tribunal hearing
- bank guarantee
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