Archive · 29 Jun 2025
ED Approves Nirma Arm's Acquisition of Vadraj Cement Plant
The government is allowing Nuvoco Vistas, a company owned by Nirma Group, to take over a cement plant in Surat.
This is because the government had previously frozen the plant's assets due to a money-laundering investigation linked to a large financial scandal involving IL&FS.
Nuvoco Vistas had a plan to buy the plant, which was approved by the court.
Because Nuvoco Vistas now rightfully owns the plant, the government has allowed the plant to be transferred back to them.
The court made sure the plant was properly accounted for and that Nuvoco Vistas will return the plant or pay for it if needed in the future.
ED cleared Nuvoco Vistas to acquire Vadraj Cement's Surat plant after a money laundering probe.
The assets, including the Surat cement plant, were seized in January 2020 as part of a ₹952 crore fraud related to IL&FS.
The Special PMLA Court in Mumbai formalized the decision on June 25.
NCLT approved a ₹1,706 crore resolution plan allowing Nuvoco Vistas to acquire the distressed company.
The court mandated a full inventory of assets and an undertaking from Nuvoco Vistas regarding future proceedings.
- Who
- The ED, Nuvoco Vistas, Vadraj Cement, and IL&FS Financial Services Ltd. were involved.
- What
- The Enforcement Directorate (ED) allowed Nuvoco Vistas Corporation Ltd. to acquire Vadraj Cement's Surat plant.
- When
- The decision was formalized by the Special PMLA Court in Mumbai on June 25, 2025. The assets were seized in January 2020.
- Where
- The Surat cement plant in Mumbai.
- Why
- To resolve an IL&FS-linked financial scandal and facilitate the transfer of assets under an approved resolution plan.
- Company
- Nuvoco Vistas Corporation Ltd.
- Plant Location
- Surat
- Financial Scandal
- IL&FS Financial Services Ltd.
- Fraud Amount
- ₹952 crore
- Resolution Plan
- ₹1,706 crore
- Court
- Special PMLA Court, Mumbai