NCLT Postpones Vedanta's Demerger Hearing Amidst Scrutiny

The National Company Law Tribunal (NCLT) postponed the hearing on Vedanta's highly anticipated demerger proposal to October 29, delaying essential decisions yet again. Initially scheduled for earlier in September, the hearing was deferred due to regulatory examinations and objections raised by the Ministry of Petroleum and Natural Gas.

Vedanta's demerger plan, which intends to separate the company's power and metal businesses, has faced intense scrutiny. Concerns were primarily about transparency in assets, specifically the RJ block, and related financial disclosures. Nevertheless, the National Company Law Appellate Tribunal (NCLAT) approved portions of the restructuring plan after resolving procedural disputes with contractors.

The proposed demerger aims to streamline operations and enhance shareholder value. Despite the Securities and Exchange Board of India's (SEBI) decision to clear the scheme, issues remain, especially regarding compliance requirements. As Vedanta revises its blueprint, the demerger deadline has been extended to September 2025 to secure all necessary clearances and address stakeholders' concerns.