Vedanta says FEMA-related ED search concludes with no adverse impact

Vedanta Ltd on Thursday said the Enforcement Directorate (ED) has concluded search operations conducted at certain company premises under the provisions of the Foreign Exchange Management Act (FEMA), adding that no penalty, restriction or sanction has been imposed on the company.

In a regulatory filing, the mining and metals major said the search operation commenced on June 1 at 12:15 PM IST and concluded on June 3 at 9:55 PM IST. The company said the action was part of an investigation under FEMA being carried out by the Directorate of Enforcement.

The company further stated that its officers provided all information, documents and clarifications sought by the agency during the course of the search. According to the filing, “No such penalty or restriction has been imposed,” and there is “no impact on financial, operation or other activities of the Company.”

The latest disclosure comes days after sources told CNBC-TV18 that the ED had conducted searches at Vedanta

’s offices in Mumbai and Delhi in connection with royalty payments made by Vedanta Ltd to its parent entity, Vedanta Resources.

Following the development, a Vedanta spokesperson had said the company was extending full cooperation to authorities and providing all information sought.

“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. As the matter is currently under regulatory process, we are unable to comment further at this stage,” the spokesperson had told CNBC-TV18.

Later, in a stock exchange filing on June 2, Vedanta had confirmed that ED officials had visited certain offices of the company and its subsidiary, Hindustan Zinc Ltd, and said it was cooperating fully with the investigation.

Shares of Vedanta were trading at ₹328.05 on the NSE on Thursday, recovering from the day’s lows after the company disclosed that there was no impact on its operations arising from the search proceedings.

The stock has also remained in the spotlight because of the group's ongoing demerger exercise. Last month, Vedanta Group Chairman Anil Agarwal told CNBC-TV18 that all four demerged entities of the Vedanta Group are expected to be listed independently by the end of June.

Vedanta shares had gained 29% during May, their strongest monthly performance in at least two years, after the stock began trading adjusted for the demerger of its Aluminium, Oil & Gas, Power, and Iron & Steel businesses.