Vedanta Denies Recent Contact with ED, Expects Demerger Approval by November 12

Vedanta Ltd. said it has had no recent engagement with India’s Enforcement Directorate and continues to comply with requests for information from statutory agencies as part of regular business operations. The company clarified this during a post-earnings conference call with analysts on Friday.

The clarification followed questions about recent reports from US-based Viceroy Research LLC alleging misgovernance and financial irregularities at Vedanta Ltd. and its parent company, UK-based Vedanta Resources. Addressing queries on the parent’s minimal London presence and its implications for transfer pricing on brand and service fees, Vedanta’s management said the parent operates a lean corporate model that is well known to the market.

The management added that Vedanta Resources maintains a small corporate centre in London, supported by service teams based in Mumbai and Delhi. Vedanta Ltd. pays brand and strategic service fees to its parent for the use of the ‘Vedanta’ name and logo, as well as for strategic support. In 2024-25, the company booked ₹23.97 billion in expenses under this agreement.

Responding to concerns that these services were not physically provided from the UK, Vedanta said, “It doesn’t have to be domiciled in a geography. When we use the Vedanta brand and receive strategic services, those are genuine services rendered to Vedanta India entities.”

On the company’s planned restructuring, management said the final National Company Law Tribunal hearing for its demerger scheme is scheduled for November 12 and approvals are expected soon after. The demerger, likely to be completed by the end of 2025-26, will separate its aluminium, power, oil and gas, and iron and steel businesses into four independent entities. Vedanta Ltd. will retain control over Hindustan Zinc Ltd. and its base metals operations post the restructuring.