In a relief for Vedanta Ltd, the National Company Law Appellate Tribunal (NCLAT) has granted an interim stay on an order of the National Company Law Tribunal (NCLT) rejecting demerger of Vedanta’s power business and its merger with resultant entity Talwandi Sabo Power Ltd (TSPL).
In a regulatory filing, Vedanta said, “We wish to inform you that the Hon’ble National Company Law Appellate Tribunal (NCLAT), has passed an order dated May 27, 2025 (uploaded on NCLAT Website on May 28, 2025), granting an interim stay on the order passed by the Hon’ble NCLT, Mumbai dated March 04, 2025, to the extent it relates to “the rejection of the Scheme”, subject to fulfilling the conditions mentioned in the Order (Order).”
In the exchange filing, Vedanta stated that it remains committed to its strategic reorganistion plan, and continues to work towards unlocking long-term value for all of its stakeholders.
A two-member NCLAT bench said, “…the issues raised before us need to be considered at length and presently in view of the submissions made the scheme is severable and thus in case the stay is not granted to the impugned order, it may affect the second motion application filed in respect of other three transferor companies pending in different tribunals.”
The matter has been listed for the next hearing on August 4.
Earlier, the NCLT had dismissed TSPL’s scheme of arrangement following objections from SEPCO Electric Power Construction Corporation, a China-based creditor. SEPCO had said that the power unit had deliberately excluded their outstanding debt of Rs 1,251 crore from the list of creditors. TSPL had entered into a contract with SEPCO for setting up a power plant for which certain aspects like ESP modifications were pending. The agreement with SEPCO was, however, terminated in February, 2024.
The tribunal had said that the non-disclosure of such a significant liability could prejudice the interests of creditors and shareholders, and the valuation of TSPL conducted without factoring in SEPCO’s claim was flawed and could impact public interest.
Anil Agarwal-led Vedanta Ltd is expecting to complete the demerger of its businesses by September-end this year.