The government has intensified its opposition to Vedanta Limited’s proposed demerger, reiterating concerns before the National Company Law Tribunal (NCLT). Officials argued that the tribunal must examine whether the scheme is being used as a ruse to frustrate recovery of government dues.
According to submissions, the government flagged financial risks post-demerger, raising issues of misrepresentation of hydrocarbon assets. Authorities also highlighted insufficient disclosure of liabilities and potential violations of SEBI’s disclosure norms.
Further, the government claimed that the demerged entity of Malco Energy is likely to go into liquidation, underscoring concerns over the sustainability of the restructuring.
The matter remains under NCLT’s scrutiny as Vedanta continues to push forward with its demerger plans.
