NCLT Reserves Verdict on Vedanta Demerger After Government Raises ₹16,700 Crore Claim

The National Company Law Tribunal (NCLT) has reserved its verdict on the proposed demerger of a leading natural resource company after the government renewed its objection, citing pending claims amounting to ₹16,700 crore. 

The government expressed concern that the restructuring could impact its ability to recover dues, given the significant change in the company’s asset profile after the proposed demerger.

According to the government, the company’s asset base before the demerger stood at over ₹2 lakh crore. However, following the separation, the oil and gas business would hold assets worth only ₹29,150 crore. This considerable reduction in the asset coverage ratio raised questions about whether the government’s claims would remain adequately secured.

Questions Over Disclosure and Ongoing Proceedings

Authorities also pointed out that certain liabilities linked to ongoing litigation had not been clearly disclosed. They highlighted arbitral proceedings related to oil blocks in Rajasthan, under which the company may be required to pay at least $222 million, or roughly ₹1,162 crore, depending on the outcome. The government argued that such contingent liabilities should be transparently reported before the restructuring process moves forward.

The objections come as part of the government’s broader effort to ensure that public claims are not diluted in the process of corporate restructuring, especially when large-scale demergers could alter the distribution of assets and liabilities across newly formed entities.

Company’s Response to the Government’s Objections

In response, the company defended its position, asserting that it had already addressed the government’s concerns by obtaining No Objection Certificates (NOCs) from 8 banks. It also clarified that the government’s claims would remain adequately protected, as post-demerger assets would still cover 1.8 times the amount of the pending dues.

Furthermore, the company stated that there is no requirement to disclose liabilities tied to litigation until a final order confirms them. The management reiterated that the demerger process is intended to simplify the corporate structure and improve operational focus across its multiple business segments.

Vedanta Share Price and Market Overview

Vedanta Share Price stood at ₹520, down 0.63% as of November 12, 2025, 4:01 PM. The company holds a market capitalisation of ₹2,03,555 crore and trades at a P/E ratio of 16.0. It maintains a book value of ₹103 and a dividend yield of 8.36%, with a return on capital employed (ROCE) of 25.3% and a return on equity (ROE) of 38.5%. 

The stock has registered a 52-week high of ₹529 and a low of ₹362, reflecting steady investor interest despite the ongoing legal and regulatory developments surrounding the demerger proceedings.

Read More:Vedanta Inks Pact To Supply 500 MW Power To Tamil Nadu Discoms.

Conclusion

The NCLT’s forthcoming verdict will be crucial in determining the future of the proposed demerger and its implications for both stakeholders and regulators. While the government has voiced concerns about the potential risk to its pending claims, the company maintains that the demerger will not compromise asset security or compliance. 

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