Vedanta confirms ED visit in FEMA probe, says fully cooperating
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Vedanta Limited on Tuesday confirmed that Enforcement Directorate teams visited some of its offices and those of subsidiary Hindustan Zinc, after reports of a foreign exchange violation probe against the group. The company said it is fully cooperating with the authorities and providing all information sought.
The disclosure came through a stock exchange filing under Regulation 30 of the SEBI Listing Regulations. Vedanta said the ED team visited “some offices of our Company and Hindustan Zinc Limited, a subsidiary of the Company,” adding that it remains committed to compliance with all applicable laws and regulations.
The development follows reports that the Enforcement Directorate has initiated an investigation under the civil provisions of the Foreign Exchange Management Act, or FEMA, over alleged violations linked to the group. Officials said premises in Delhi, Rajasthan and other locations were covered in the searches, according to PTI.
Vedanta did not elaborate on the nature of the inquiry and said it could not comment further because the matter is under regulatory process. “The company is extending its full co-operation to the authorities and providing all information sought,” it said in the filing.
For investors, the immediate focus is on the scope of the ED action and whether the matter stays confined to a search and information request or develops into a broader enforcement case. The mention of Hindustan Zinc widens the footprint of the visit within the group, even as Vedanta seeks to reassure the market that it is cooperating fully.
Billionaire Anil Agarwal-led Vedanta Resources is a large diversified natural resources company with operations across India and overseas, spanning metals, critical minerals and technology businesses.
The board of the company recently approved a demerger of Vedanta companies which are planned for listing as four entities: Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL), and Vedanta Iron and Steel Limited (VISL).
Shares of Vedanta Limited shares ended Tuesday 1.05% lower at ₹333.60 apiece on the National Stock Exchange. The company's stock has fallen nearly 23% in the past year, underperforming the Nifty Next 50 index that has risen nearly 5% during the same period.