Wow they actually visited the site, used drones, interviewed locals, and pulled public filings. If even half of this is accurate, the $70m valuation is fantasy, and the $15m rehab provision is laughable.
Its a ticking time bomb. Too risky.
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The promoters have been draining the company’s reserves for the past few years in the name of dividends with unsustainable dividend payout ratio.
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Shakti Bhatia Vs Union of India
I remembered there were a few PILs for the Adani case. The petitioner is pushing SEBI and RBI to speed up carrying out investigations. Good to see that he is protecting investors interests!
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Thanks for sharing! They posted this today:
I didn’t understand the full legal terms for PIL but it is explained:
The petitioner is asking the court to order SEBI, RBI, and the MCA to investigate the findings of Viceroy’s reports on Vedanta Resources Limited (VRL), the UK domiciled parent of Vedanta Limited (VEDL).
If admitted, the Court can monitor the process, set deadlines, and force public disclosure of investigative
results. This is material for bondholders because PIL-driven cases have historically triggered court-supervised probes, license cancellations, and sweeping regulatory actions.
Vedanta PIL, other companies like IL&FS, Indiabulls, NSEL had these in the past… all started with court-driven investigations and ended with frozen assets, regulator pile-ons, and years of fallout. If this gets admitted, it’s not just Vedanta’s problem anymore.
Just look at Adani earlier in 2023, the biggest dropped during that PIL period of time was 45%!
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Former Secretary to the Government of India’s letter to Union Mines Minister:
Vedanta is syphoning off Hindustan Zinc Limited’s scarce internal resources to repay Vedanta’s London-based parent company’s huge deb
https://countercurrents.org/2025/08/vedanta-is-syphoning-off-hindustan-zinc-limiteds-scarce-internal-resources-to-repay-vedantas-london-based-parent-companys-huge-debt/
This is also something that I am confused about, why the government doesn’t care about the wrongdoings? Just because they do receive dividend from Vedanta?
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It is not just people in Odisha/ Sterlite Copper at Tamil Nadu protesting about Vedanta’s toxic operations, Zambian workers are also harmed by their operations in Africa. Not very good looking business
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Any guess of how much the dividend will be? The shares are rising sharp on the news of dividend!
read a report that they will declare it on the 21st
LIC has already started selling its stake in VEDL. Not far away till the time they sell all of it off.
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NCLT Defers Vedanta Demerger Case Hearing To September 17
Centre Objects To Vedanta Demerger In NCLT, Claims It Has ‘Serious Objections’
Centre Says, Govt Will Be Unable To Recover Dues
Govt Submits That There Has Been Concealment, Non-Disclosure Of Key Details
Govt Flags ‘Inflated Revenues’, ‘Concealed Liabilities’
Govt Flags How Vedanta Modified Scheme After NOC From SEBI, Exchanges
SEBI Confirms Vedanta Modification Post NoC, Terms It A ‘Serious Breach’ Of Master Circular
SEBI Submits That It Has Issued An Administrative Warning To Vedanta
SEBI Says, Modification Could Not Have Been Done Post NOC
SEBI Says, Vedanta Required To Place Warning’ Before Board
From CNBC, this doesn’t sound good, a lot of analysts mentioned that any delay in the demerger process will be viewed negatively. Vedanta just bounced back a little yesterday, now it will be down like 2% again. Just don’t have too much hope on it until the demerger actually come or it never comes. The promised deadline end of September, will not be met for sure.
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Did anyone see this? So HZL is basically being a cash cow again?
HZL paid Rs1,060 crore in the first quarter (Q1) of FY25–26 under the head of brand and strategic services (BSS) fees to Vedanta Ltd. This payment, routed further to Vedanta Resources Ltd, the debt-laden parent of Vedanta, was made without obtaining mandatory shareholder approval, as required by law. The report, supported by a detailed legal opinion, says the brand fee transaction qualifies as a material related-party transaction under both regulation 23 of SEBI’s LODR Regulations and section 188 of the Companies Act, 2013.
This qualifies as a material related party transaction under SEBI and Companies Act provisions, how was it allowed to proceed without transparency or consent? The fact that government-nominated directors reportedly did not object is even more concerning. Especially when HZL’s revenues and earnings are declining.
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A few things listed as violation here:
Regulation 23(1A) of SEBI’s LODR mandates shareholder approval for brand or royalty payments exceeding 5% of turnover.
Regulation 23(1) requires approval for related-party transactions above ₹1,000 crore.
Both thresholds are cumulative, as clarified by SEBI’s Primary Market Advisory Committee (PMAC) and reinforced in 2022 amendments.
This is evident violation. And this isn’t new, the same rules apply to Vedanta limited, this could go back years, as we all know now!
If shareholders take a stand, we could reclaim over ₹12,500 crore across the group. It’s a massive opportunity to restore value to the company. Stopping these brand fees could boost HZL’s valuation by a huge amount, based on P/E and EV/EBITDA multiples. That real money belongs to the minority investors, not to a vampire parent company.
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This Economic Times article is very punchy 
It says the demerger plan is not going as planed. First came legal roadblocks, then regulatory hurdles, and now even the central government has stepped in, threatening the demerger plan
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This PIL will be heard on Monday next week! So if SEBI or RBI is committed to carry out investigation, that will be very negative on Vedanta. Looking at what happened for Adani, after the PIL hearing, it’s terrifying. What’s everyone’s expectation on this? @RB1990 @neha1101
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Thanks for sharing! That’s very useful information. But I think SEBI, RBI has already carried out investigation because the short seller has sent a couple complaints to them, they just haven’t announced it yet out of some reason.
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There NCLAT hearings on TSPL dispute has been postponed to next week as well, to 12th September. No chance demerger will be on time.
The demerger has been postponed, the CEO today said the announcement is expected to be at the end of this year. Equity Analysts are very likely to incorporate this negative news in the next target price as many has mentioned the street see any delay as a negative factor.
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They are looking into the cases now.
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