{"id":251723,"date":"2025-03-04T20:33:04","date_gmt":"2025-03-04T20:33:04","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/04\/nclt-rejects-tspl-demerger-vedantas-restructuring-plan-faces-hurdle\/"},"modified":"2025-03-04T20:33:04","modified_gmt":"2025-03-04T20:33:04","slug":"nclt-rejects-tspl-demerger-vedantas-restructuring-plan-faces-hurdle","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/04\/nclt-rejects-tspl-demerger-vedantas-restructuring-plan-faces-hurdle\/","title":{"rendered":"NCLT rejects TSPL demerger: Vedanta\u2019s restructuring plan faces hurdle"},"content":{"rendered":"
\"NCLT<\/div>\n
The Mumbai bench of the National Company Law Tribunal (NCLT<\/a>) on Tuesday rejected a proposed demerger plan by Talwandi Sabo Power Limited (TSPL), a subsidiary of Vedanta Ltd<\/a>, citing inadequate disclosures. <\/p>\n

The restructuring plan<\/a>, aimed at splitting Vedanta into five separate entities, was challenged by SEPCO<\/a>, a creditor owed Rs 1,251 crore by TSPL. <\/p>\n

This could delay the planned restructuring of Vedanta.<\/p>\n

Vedanta did not reply to an email query until press time.<\/p>\n

Sepco Electric Power Construction Corporation is a Chinese construction and engineering company that designs and builds power generation and transmission infrastructure.<\/p>\n


\u201cThe present one is a case where material facts have not been disclosed by the Applicant Company, violating Section 230 (2)(a) of the Companies Act, 2013, which in our considered opinion is bound to prejudice the public interest at large,\u201d observed the division bench of judicial member Reeta Kohli and a technical member Madhu Sinha in its order of March 4. \u201c…keeping in view of the facts and circumstances of the present case, we deem it appropriate to reject the Scheme presented by the Applicant under Section 230 of the Companies Act,\u201d said the bench in its 20-page order. In an emailed response, Vedanta spokesperson said the comapny confirms receipt of the Order from the Hon\u2019ble National Company Law Tribunal (NCLT), Mumbai Bench, dated March 4, 2025, on the matter of the application of Talwandi Sabo Power Limited (TSPL) on its demerger scheme application. “TSPL has been advised that there are legal grounds to appeal<\/a> the Relevant Order and proposes to appeal the Relevant Order at their earliest opportunity. Vedanta Limited \/ TSPL is committed to honouring the letter and spirit of the law, and is confident of pursuing its Demerger Scheme of Arrangement through to its logical conclusion.”, Vedanta Spokesperson <\/p>\n

Vedanta, led by billionaire Anil Agarwal, had proposed splitting its operations into independent listed companies focusing on aluminium, base metals, iron and steel, oil and gas, and power generation. The company argued that the move would unlock shareholder value and attract sector-specific investors.<\/p>\n

Before the tribunal\u2019s order, Kapil Arora partners at Cyril Amarchand Mangaldas, appearing for SEPCO argued that Vedanta subsidiary Talwandi Sabo Power Ltd<\/a> (TSPL) deliberately excluded its dues from financial statements, impacting the net worth and valuation of the demerged entities.<\/p>\n

SEPCO, through its counsels, argued that TSPL recognized SEPCO as a creditor, not just as on October 31, 2023, but in the balance sheet dating back to FY 2019- 2020. <\/p>\n

\u201cIn the balance sheet for FY 2022-23, SEPCO\u2019s debt was recognized as \u201cforeign currency exposure\u201d of approx. $ 137 million. The said amount arises from a consent award dated May 21, 2016, passed in favour of SEPCO against TSPL wherein TSPL had agreed to pay an amount of $138 million and Rs 122 crores,\u201d argued SEPCO. <\/p>\n

The demerger was approved by 99.9987% of shareholders, 99.5900% of secured creditors, and 99.9588% of unsecured creditors who voted in favour of the proposal.<\/p>\n

The proposed demerger aims to create five independent, globally scaled companies specializing in mining, production, and the supply of aluminium, iron ore, copper, oil and gas, and power generation. <\/p>\n

Additionally, the demerger will allow each independent company to attract specialized investors, strategic partners, and lenders, fostering deeper collaborations and expansion without affecting the broader organization.
<\/p>\n<\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Mumbai bench of the National Company Law Tribunal (NCLT) on Tuesday rejected a proposed demerger plan by Talwandi Sabo Power Limited (TSPL), a subsidiary of Vedanta Ltd, citing inadequate disclosures. The restructuring plan, aimed at splitting Vedanta into five separate entities, was challenged by SEPCO, a creditor owed Rs 1,251 crore by TSPL. This […]<\/p>\n","protected":false},"author":2,"featured_media":251724,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/msid-118716708,imgsize-993096.cms","fifu_image_alt":"","footnotes":""},"categories":[602],"tags":[78407,78325,4408,194918,32708,194919,17236,736,194920,1733,14990,194917,194915,194914,194921,194916,188057,97337,48301],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/251723"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=251723"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/251723\/revisions"}],"predecessor-version":[{"id":251725,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/251723\/revisions\/251725"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/251724"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=251723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=251723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=251723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}