Archive · 29 May 2025
NCLAT Halts NCLT's Rejection of Vedanta Demerger Plan
Vedanta, a big company, wanted to split into smaller companies, but a court said no.
Another court, the NCLAT, stepped in and said, "Wait a minute!"
They temporarily stopped the first court's decision.
This happened because of a disagreement about debt.
One company, Sepco, said that it was owed money by TSPL.
The NCLAT told TSPL to set aside money just in case.
Vedanta says it still wants to reorganize.
The case will be discussed again in August.
NCLAT granted an interim stay on NCLT's order rejecting part of Vedanta's demerger.
The demerger proposal involved separating Vedanta's businesses into various subsidiary companies.
NCLT rejected the demerger of Vedanta’s power business and its merger with TSPL due to debt concerns.
Sepco objected to the demerger because of TSPL's debt.
NCLAT asked TSPL to provide a bank guarantee of ₹1,245 crore to protect Sepco's interests.
- Who
- NCLAT, Vedanta Ltd., TSPL, Sepco Electric Power Construction Corporation, and other stakeholders.
- What
- NCLAT granted an interim stay on the NCLT order rejecting Vedanta’s demerger proposal.
- When
- The interim stay was granted on May 27, 2025, and the case is posted for hearing on August 4.
- Where
- National Company Law Appellate Tribunal (NCLAT) in India
- Why
- To address objections to Vedanta’s demerger plan and protect stakeholders' interests.
Vedanta's Stance
Sepco's Stance
Demerger Proposal
Vedanta's Stance
Vedanta sought to demerge its power business, with TSPL taking it over.
Sepco's Stance
Sepco objected the demerger proposal due to the debt of TSPL.
- Date of NCLAT Order
- May 27, 2025
- Date of Article Publication
- May 29, 2025
- Companies Involved
- Vedanta Ltd., TSPL, Sepco Electric Power Construction Corporation
- NCLT Decision
- Rejected part of Vedanta’s demerger proposal
- NCLAT Action
- Granted interim stay on NCLT order
- TSPL's Debt
- ₹1,245 crore
- Next Hearing Date
- August 4