PANAJI
Goa Pradesh Congress Committee (GPCC) president Girish Chodankar on Sunday urged the Securities and Exchange Board of India (SEBI) to withhold the scheduled listing of Vedanta Iron & Steel Limited (VISL), alleging that the company has failed to disclose a material contingent liability of approximately Rs 16,500 crore linked to mining operations in Goa.
In a formal complaint addressed to SEBI Chairperson and senior officials, Chodankar claimed that VISL, a newly incorporated entity created through the demerger of Vedanta Limited’s iron ore business, is slated to be listed on Indian stock exchanges on June 15.
He alleged that Vedanta Limited had not disclosed an unresolved liability arising from what he described as commercial exports of iron ore from Goa beyond captive consumption requirements. According to the complaint, the estimated liability pertains to revenue allegedly owed to the people of Goa from such exports.
Chodankar contended that the liability was not disclosed in the demerger documents, exchange filings or scheme documents, despite being material in nature. He further alleged violations of SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations and disclosure norms governing corporate restructuring schemes.
The GPCC chief argued that allowing the listing to proceed without disclosure would compromise investor interests and make recovery of any future dues difficult following the demerger.
Seeking intervention, Chodankar urged SEBI to withhold the listing of VISL until full disclosures are made, issue a show-cause notice to Vedanta Limited, direct fresh disclosures to stock exchanges and initiate an independent inquiry into the demerger process.
