National Company Law Appellate Tribunal (NCLAT) has granted relief to Anil Agarwal-led Vedanta with an interim stay on a previous order passed by the National Company Law Tribunal (NCLT). The tribunal in its previous order had dismissed the mining major’s demerger scheme. The company affirmed its strategic reorganisation plan in a statement on May 29.
“NCLAT has passed an order...granting an interim stay on the order passed by NCLT...,to the extent it relates to the rejection of the Scheme,” said the company in a statement on Thursday.
The two-member bench of NCLAT said it will hear the matter in detail and has set August 4 as the next date for the hearing.
“...the issues raised before us need to be considered at length,” the NCLAT bench said in a May 27 order.
Earlier in March this year, NCLT’s Mumbai Bench had rejected the TSPL’s scheme after objections were raised by a China-based creditor, SEPCO Electric Power Construction Corporation. SEPCO had claimed that the power unit had failed to disclose outstanding debt worth Rs 1,251 crore from the list of creditors. NCLT, in its February order, said the non-disclosure of such a significant liability could prejudice the interests of creditors and shareholders.
Vedanta Demerger Scheme
Anil Agarwal-led conglomerate is in the process of demerging its businesses into independent and separately listed entities with an aim to streamline operations. Earlier in February this year, the company received approval from its shareholders and creditors to split the business into five independent sector-specific companies. The companies of the mining-to-metal conglomerate include Vedanta Aluminium, Vedanta Power, Vedanta Iron and Steel, Vedanta Oil & Gas and Vedanta Limited.
Additionally, the conglomerate mentioned that over time, each of the newly separated businesses can attract different sets of investors, strategic partners, lenders, and other stakeholders to drive deeper collaboration and sector-specific expansion.
