ED Conducts Searches at Vedanta-Linked Premises in Delhi and Mumbai Over Alleged FEMA Violations
The Enforcement Directorate (ED) has conducted searches at two premises linked to the Vedanta Group in Delhi and Mumbai as part of an investigation under the Foreign Exchange Management Act (FEMA). Senior agency officials confirmed the searches, which have now concluded, are related to alleged brand fee payments made by group entities to their parent company.
According to officials, the probe involves examining financial records and agreements to determine compliance with FEMA provisions. The ED teams conducted searches at one location each in Delhi and Mumbai. The operation began on Monday and has now concluded.
The probe agency collected documents and records linked to the alleged transactions being examined under FEMA provisions. The investigators are specifically reviewing payments allegedly made for brand usage and whether those transactions complied with foreign exchange regulations.
In a statement, a Vedanta spokesperson said, “We are extending full cooperation to the authorities and are providing all information sought. The company remains committed to compliance with all applicable laws and regulations.”
The officials will now analyze the documents and records collected during the operation before deciding on the next steps in the matter. Further details are awaited as investigators review the materials collected. The ED has not yet issued an official statement on the searches.
Meanwhile, Vedanta Limited informed stock exchanges last month that the Supreme Court of India ruled against its subsidiary Talwandi Sabo Power Limited (TSPL) in a case related to alleged misdeclaration of power availability. This ruling resulted in a penalty payout of nearly Rs 127 crore along with applicable late payment surcharge.
In a regulatory filing, Vedanta said it had received a disclosure from TSPL regarding a judgment dated May 20, passed by the apex court in appeals filed by Punjab State Power Corporation Limited (PSPCL) and Punjab State Load Despatch Centre (PSLDC). The company remains committed to resolving the matter and ensuring full compliance with all legal requirements.
Vedanta Group is a leading diversified metals and mining company with operations in India and internationally. The company is committed to sustainable growth and ethical business practices. The recent searches and legal developments highlight the ongoing scrutiny of financial practices in the corporate sector, particularly in relation to foreign exchange regulations.
