Team Goemkarponn
PANAJI: The Goa Pradesh Congress Committee (GPCC) has written to the Securities and Exchange Board of India (SEBI), urging it to withhold the proposed listing of Vedanta Iron & Steel Limited (VISL) scheduled for June 15, 2026, citing alleged non-disclosure of a contingent liability of approximately ₹16,500 crore.
In the complaint addressed to the SEBI Chairperson, GPCC president Girish R. Chodankar alleged that Vedanta Limited failed to disclose what it describes as a substantial public dues liability linked to historical iron ore mining operations in Goa. The letter claims that nearly 31% of iron ore production from the company’s Goa mines was commercially exported beyond permitted captive use, resulting in what it terms an unlawful financial gain.
According to the complaint, this alleged liability—estimated at ₹16,500 crore—was not disclosed in Vedanta Limited’s demerger filings or in material disclosures submitted to stock exchanges in connection with the creation of VISL.
The GPCC has argued that the omission violates SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, particularly provisions related to material disclosures and contingent liabilities. It further contends that investors in the upcoming listing may be unaware of potential unresolved financial obligations tied to the demerged mining assets.
The letter also raises concerns that the corporate restructuring could create a “liability vacuum” between Vedanta Limited and its newly demerged entity, potentially complicating future recovery of any dues, should they be legally established.
In its submission, the GPCC has sought urgent intervention from SEBI, including withholding of listing approval for VISL until corrective disclosures are made, issuance of a show-cause notice to Vedanta Limited, and a directive for disclosure of the disputed liability across stock exchanges. It has also called for an independent inquiry into the demerger process and alleged omissions in regulatory filings.
SEBI has not publicly responded to the allegations at the time of filing this report.
Vedanta Limited and VISL have not issued an immediate comment on the specific claims raised in the complaint.
The listing of Vedanta Iron & Steel Limited remains scheduled for June 15, 2026, subject to regulatory approvals.
