ED launches FEMA probe against Vedanta Group over brand fee refund
The Enforcement Directorate (ED) has initiated a foreign exchange violation investigation against billionaire Anil Agarwal’s Vedanta Group and carried out searches at multiple official premises of the company, officials said on Tuesday.
The raids were conducted on Monday at four locations of Vedanta Ltd, including offices in Delhi, Mumbai and Udaipur in Rajasthan, the officials said.
The probe is being conducted under the civil provisions of the Foreign Exchange Management Act (FEMA). At the centre of the investigation is an instance in 2023 when Vedanta Resources, the London-based parent of Indian-listed Vedanta Ltd, refunded a part of the brand fee to its Indian arm, officials said. The federal agency is also examining other financial structures within the group, they added.
A Vedanta spokesperson confirmed the ED action and said the company was “extending full cooperation to the authorities and is providing all information sought.”
“The company remains committed to compliance with all applicable laws and regulations. As the matter is currently under the regulatory process, we are unable to comment further at this stage,” the spokesperson added. Vedanta Ltd is a leading global producer of metals and critical minerals with operations across India, Africa, the Middle East and East Asia.
The company recently received board approval for a major demerger plan under which its businesses will be reorganised and listed as four separate entities: Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL) and Vedanta Iron and Steel Limited (VISL).
The development comes at a time when the conglomerate is restructuring its operations into independent verticals.
