The Enforcement Directorate (ED) on Tuesday, June 2, carried out searches at premises linked to the Vedanta Group as part of an investigation into alleged violations under the Foreign Exchange Management Act (FEMA).
Officials said the searches were conducted at multiple locations, including offices in Delhi, Rajasthan, Mumbai and other premises connected to the mining conglomerate promoted by billionaire industrialist Anil Agarwal.
According to officials, the probe pertains to alleged foreign exchange violations linked to royalty payments made by Vedanta to its parent company, Vedanta Resources. The investigation is being conducted under the civil provisions of FEMA.
Confirming the ED action, a Vedanta spokesperson said the company was cooperating fully with investigators.
"We are extending full cooperation to the authorities and are providing all information sought. The company remains committed to compliance with all applicable laws and regulations. As the matter is currently under regulatory process, we are unable to comment further at this stage," the spokesperson said.
The searches come at a significant time for the company, which is in the process of implementing a major demerger plan. The restructuring will split Vedanta's existing operations into separate business verticals that will be listed independently.
Last month, Vedanta Group Chairman Anil Agarwal said all the demerged entities were expected to be listed within a month. The restructuring is set to create separate companies focused on aluminium, oil and gas, power, and iron and steel businesses.
According to Agarwal, the aluminium business currently produces around three million tonnes annually and aims to double production to six million tonnes within the next three years. The oil and gas division is planning investments of about $5 billion over the next three to five years to increase production to 500,000 barrels per day.
The power business, which currently generates around 4,000 MW, has set a target of expanding capacity to 20,000 MW through brownfield projects. The iron and steel division, meanwhile, plans to increase production capacity from four million tonnes to 15 million tonnes, with a focus on green, electrical and speciality steel.
Vedanta Ltd is among the country's largest producers of metals and critical minerals and has operations across India, Africa, West Asia and East Asia.
Following reports of the ED action, Vedanta shares were trading lower during the day, falling about 0.7% to Rs 334.6 in morning trade.