SEBI Urged to Pause Vedanta Iron and Steel Listing Over Rs 16,500 Crore Goa Mining Claim

The listing of Vedanta Iron and Steel Limited (VISL) has come under fresh scrutiny after the Goa Pradesh Congress Committee (GPCC) urged the Securities and Exchange Board of India (SEBI) to withhold its market debut, reviving a long standing dispute over iron ore mining operations in the state.

In a letter to the SEBI Chairperson , GPCC president Girish Chodankar alleged that the Vedanta group has not disclosed a contingent liability of around Rs 16,500 crore linked to iron ore mining in Goa. He argued that this alleged omission raises serious concerns under market disclosure norms and could mislead investors if the listing proceeds.

The controversy is rooted in a prolonged Goa mining dispute that dates back several years of regulatory and legal scrutiny over iron ore extraction in the state. Goa has witnessed repeated action over mining leases and allegations of irregular exports, making the sector one of the most closely monitored in the country.

Against this backdrop, Chodankar alleged that Vedanta Ltd carried out commercial exports of iron ore despite leases being intended for captive use. He claimed that nearly 31 percent of production from Goa operations was exported commercially, generating revenues estimated at Rs 16,500 crore , which he described as dues belonging to the people of Goa.

He further claimed that this liability was not disclosed in the demerger scheme documents or in filings made to stock exchanges. According to him, this amounts to a violation of SEBI's Listing Obligations and Disclosure Requirements (LODR) , particularly rules related to material disclosures and contingent liabilities.

The demand comes at a crucial time as Vedanta Ltd prepares to list four demerged entities on Indian stock exchanges. Along with the parent company, the new listings include Vedanta Aluminium Metal (VAML) , Vedanta Oil and Gas (VOGL) , Vedanta Power , and Vedanta Iron and Steel (VISL) .

Chodankar has urged SEBI to halt the listing of VISL until what he termed "full corrective disclosure" is made. He has also sought a show cause notice to Vedanta Ltd, a directive to furnish a bank guarantee of Rs 16,500 crore to the Goa government, and an independent inquiry into the demerger process for alleged suppression of facts.

He warned that once the company is listed, enforcing accountability over the disputed dues could become significantly more difficult due to the separation of entities created under the demerger structure.

Describing the issue as one of public interest, he said allowing the listing without resolution would amount to a " grave injustice " to the people of Goa.

Vedanta Ltd has not yet responded to the allegations. The upcoming listings are expected to draw close attention from investors and regulators given the scale of the restructuring and the fresh political objections surrounding it.