New Delhi, June 2: The Enforcement Directorate (ED) has conducted searches at two locations linked to the Vedanta Group in New Delhi and Mumbai as part of an ongoing investigation under the Foreign Exchange Management Act (FEMA). Senior officials provided this information on Tuesday.
According to the officials, these search operations are reportedly connected to ‘brand fee payments’ made by the group’s companies to their parent company.
The investigation agency has gathered documents and records related to these alleged transactions, which are being scrutinized under FEMA provisions. The ED teams executed searches at one site each in New Delhi and Mumbai. This operation began on Monday and has since concluded.
Officials are currently reviewing the financial records and agreements associated with these payments.
Investigators are reportedly examining the payments made for brand usage to determine if these transactions complied with foreign exchange regulations.
A spokesperson for Vedanta stated, “We are fully cooperating with the authorities and providing all requested information. The company is fully committed to adhering to all applicable laws and regulations.”
Sources indicate that the operation has been completed, and officials will analyze the documents and records collected during the campaign before deciding on further actions in the case. Investigators are reviewing the gathered materials, and more information is awaited.
As of now, the ED has not issued any official statement regarding this operation.
Meanwhile, Vedanta Limited informed stock exchanges last month that the Supreme Court of India ruled against its subsidiary, Talwandi Sabo Power Limited (TSPL), in a case concerning alleged misinformation about electricity availability. As a result, the company faces a penalty of approximately ₹127 crores along with applicable late payment surcharges.
In a regulatory filing, Vedanta mentioned that it received information regarding a decision made on May 20 related to TSPL. This ruling was delivered by the Supreme Court in response to appeals filed by Punjab State Power Corporation Limited (PSPCL) and Punjab State Load Dispatch Center (PSLDC).
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