Vedanta demerger: In a major relief for Anil Agarwal’s Vedanta Limited, the National Company Law Appellate Tribunal (NCLAT) has granted an interim stay on the order passed by the National Company Law Tribunal (NCLT) rejecting the mining major’s demerger scheme.

Following the announcement by the company, Vedanta share price witnessed a relief rally, rising over 1% from its day’s low in an otherwise weak market.

The NCLT had dismissed a demerger scheme filed by Talwandi Sabo Power Ltd (TSPL) at an initial stage in a setback for the five-way spinoff of its parent Vedanta.

NCLT’s Mumbai bench had ruled that TSPL’s proposed demerger scheme lacked necessary disclosures, mainly about its debt obligations.

The decision came after China-based SEPCO Electric Power Construction Corporation raised objections to the demerger, saying that the power unit had deliberately excluded their outstanding debt of ₹1,251 crore from the list of creditors.

SEPCO opposed the scheme, alleging that TSPL had concealed material information about its liabilities.

The NCLT order said, “this has been done deliberately to defeat SEPCO’s rights.”