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The Enforcement Directorate (ED) has initiated an investigation into Vedanta Group under the Foreign Exchange Management Act (FEMA) and conducted searches at multiple company premises across India. The probe is examining certain foreign exchange-related transactions, including a 2023 instance in which Vedanta Resources, the London-based parent company, reportedly refunded part of a brand fee to Vedanta Ltd. The agency is also reviewing other corporate structures within the group. Vedanta has acknowledged the regulatory action and stated that it is fully cooperating with authorities while continuing to comply with all applicable laws and regulations.
The Enforcement Directorate (ED) has initiated a foreign exchange-related investigation against billionaire Anil Agarwal-led Vedanta Group under the provisions of the Foreign Exchange Management Act (FEMA), according to officials familiar with the matter.
As part of the investigation, the agency carried out searches at four premises of Vedanta Ltd across key locations, including Delhi, Mumbai and Udaipur. The exercise was conducted as part of a preliminary examination of certain transactions and corporate arrangements linked to the group.
Officials said the investigation is being undertaken under the civil provisions of FEMA, which governs foreign exchange transactions and cross-border financial dealings. Unlike criminal proceedings under other laws, FEMA-related investigations typically focus on compliance and regulatory aspects of foreign exchange transactions.
One of the transactions under scrutiny relates to an instance in 2023 when Vedanta Resources, the London-based parent company of Vedanta Ltd, reportedly refunded a portion of the brand fee paid by the Indian entity. Authorities are examining the nature and structure of this transaction as part of the ongoing probe.
The ED is also reviewing certain other group structures and arrangements, although officials have not disclosed further details regarding the scope of the investigation.
Responding to the development, a spokesperson for Vedanta confirmed that the company was cooperating with the authorities and providing all information sought during the course of the inquiry. The spokesperson indicated that the company remains committed to complying with all applicable laws and regulations and would not comment further as the matter is currently under a regulatory process.
Vedanta Ltd is among India's major natural resources companies, with business interests spanning metals, mining, critical minerals, oil and gas, power generation and technology. The company operates across India and several international markets, including regions in Africa, the Middle East and East Asia.
The development comes at a significant time for the group, which is in the process of restructuring its business portfolio. In recent months, Vedanta's board approved a demerger plan aimed at creating separate listed entities for its aluminium, power, energy, and iron and steel businesses. The proposed entities include Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL), and Vedanta Iron and Steel Limited (VISL).
The demerger is intended to create independent business verticals and unlock value across the group's diversified operations, subject to regulatory and shareholder approvals.
Source PTI
5th Jun, 2025
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