Government Flags Financial Risks in Vedanta Demerger Plan

Vedanta wants to split into five smaller companies.

The government is worried about this plan.

The Ministry of Petroleum and Natural Gas thinks the company didn't give all the facts.

They are especially concerned about one of the new companies, Malco Energy, which is losing money and has a negative net worth.

The government also worries it won't be able to get its money back if the demerger goes through because Vedanta has an ongoing dispute over the RJ-oil and gas block in Rajasthan and undisclosed liabilities.

Both sides will file arguments, and the NCLT will hear the case again in October.