SC dismisses Vedanta plea over R187-crore security to Chinese co

Written by Indu Bhan | Indu Bhan | New Delhi | Updated: Jul 23 2013, 18:18pm hrs
In a major setback to Vedanta Aluminum (VAL), the Supreme Court on Monday dismissed its plea against the Bombay High Court that asked the Anil Agarwal

firm to deposit a security amount of R187 crore with the court, till the disposal of arbitration proceedings with Chinese power equipment manufacturer Shenzen Shandong Nuclear Power Construction Company (SSNPCC).

VAL would also not be able to transfer its assets for the same amount, as directed by the HC in December last year.

Besides, the injunction against transfer of assets will affect the amalgamation arrangements between Sesa Goa and Sterlite India, pending before the Bombay HC, and the Madras Aluminium Company and Sesa Goa, on which decision is awaited from the Madras HC.

SSNPCC had filed an arbitration plea to recover its dues against Vedanta saying the firm has incurred tremendous losses' due to work stoppage at the latter's alumina refinery in Lanjigarh, Orissa.

VAL had roped in SSNPCC in 2008 for setting up co-generation units on a turn-key basis for the R1,200-crore project. However, the project is stuck due to lack environmental clearance.