ED initiates FEMA violation probe against Vedanta, runs raids
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New Delhi: The Enforcement Directorate has initiated a foreign exchange "violation" investigation against billionaire Anil Agarwal's Vedanta Group and conducted searches at its official premises, PTI reported on Tuesday.
The raids were launched against the global mining conglomerate on Monday, and four premises of Vedanta Ltd, including those located in Delhi, Mumbai and Udaipur in Rajasthan, were surveyed, officials told PTI.
The investigation is being conducted under the civil provisions of the Foreign Exchange Management Act (FEMA).
An instance of Vedanta Resources, the London-based parent of Indian company Vedanta Ltd., refunding a part of the brand fee to the latter (Vedanta Ltd.) in 2023 is under the scanner of the federal probe agency, the officials said.
The ongoing probe is also looking at some other structures of the group, the officials said.
A Vedanta spokesperson confirmed the ED action to PTI, saying the company was "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.
Vedanta Ltd is a leading global producer of metals, critical minerals and technology. The company has operations across India, Africa, the Middle East and East Asia.
The board of the company recently approved a demerger of Vedanta companies, which are planned for listing as four entities: Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL), and Vedanta Iron and Steel Limited (VISL).