The Enforcement Directorate (ED) has conducted searches at multiple premises linked to the Vedanta Group as part of an investigation under the Foreign Exchange Management Act (FEMA), officials said on Tuesday. The action marks the latest regulatory scrutiny of one of India’s largest mining and natural resources conglomerates.
According to officials, the searches were carried out at locations in Delhi, Mumbai and Rajasthan after the agency initiated a probe into suspected foreign exchange violations. The investigation is being conducted under FEMA’s civil provisions, although authorities have not disclosed the full details of the alleged irregularities.
Reports indicate that the probe is linked to royalty payments made by Vedanta to its parent company, Vedanta Resources. Investigators are examining whether the transactions complied with foreign exchange regulations and whether any FEMA provisions were violated. However, the ED has not officially confirmed the exact nature of the allegations.
The searches reportedly began on Monday and continued at multiple locations connected to the Anil Agarwal-led group. During the operation, officials are understood to have examined financial records, digital data and documents related to overseas transactions and fund flows.
Responding to the development, Vedanta said it was extending full cooperation to investigators. In a statement, the company said it is providing all information sought by the authorities and remains committed to complying with all applicable laws and regulations. The company declined to comment further, citing the ongoing regulatory process.
The investigation comes at a significant time for Vedanta, which is in the process of implementing a major corporate restructuring plan aimed at splitting its businesses into separate verticals. Market sentiment was affected by the news, with Vedanta shares trading lower during the day following reports of the searches.
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