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Indian News: Breaking Stories and TrendsIndian News: Breaking Stories and Trends
Home » Blog » NCLAT grants interim stay on NCLT order rejecting Vedanta’s demerger proposal

NCLAT grants interim stay on NCLT order rejecting Vedanta’s demerger proposal

Ananya MehtaBy Ananya Mehta India
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The Court of Appeals of the Law of National Companies (NCLAT) on Thursday (May 29, 2025) granted an interim stay of the Order of the Court of the Law of National Companies (NCLT) that rejected part of the proponent of Vedanta Ltd proponent or its various businesses.

The diversified conglomano of Natural Resources Vedanta Ltd. decided to retain its base metal business and propose to demonstrate 4 companies in respect for subsidiary companies, namely, Vedanta Aluminum Metal Ltd., Talwandi Sabo Power Ltd. (TSPL), Malco Energy Ltd. and Vedanta Iron Iron and Steel Ltd …

In March, NCLT Mumbai rejected the depmergency of the vedanta energy business and its fusion with the resulting company TSPL, citing an insufficient debt dissemination, after the SEPCO Electric Power Construction Corporation (SEPCO) …

TSPL had moved NClat against the NCLT order.

“The problems raised before us must be considered extensively and currently in view of the presentations made, the scheme is separable and, therefore, in the event that the stay is not granted to the contested order, it can affect the second motion presented in respect or courts,” said the NClat in its order dated May 27.

The NCLAT also asked TSP to provide a bank guarantee of ₹ 1,245 million rupees to protect Sepco’s interest, within two weeks.

The NCLAT maintained the part of the scheme rejected by the NCLT until the next audience date. He published the case for the audience on August 4 Audience.

After the interim stay, Vedanta said Thursday that it meets with its strategic reorganization plan and continues to work to unlock long -term value for all interested parties.

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