New Delhi, June 2 (IANS) The Enforcement Directorate (ED) has conducted searches at two premises linked to the Vedanta Group in Delhi and Mumbai as part of an investigation under the Foreign Exchange Management Act (FEMA), senior agency officials said on Tuesday.
According to officials, the searches, which have concluded, are related to alleged “brand fee payments made by group entities to their parent company”.
The probe agency collected documents and records linked to the alleged transactions being examined under FEMA provisions, they added.
“ED teams searched for one location each in Delhi and Mumbai. The operation began on Monday and has now concluded,” the official said.
The authorities are reviewing financial records and agreements connected to the payments.
The investigators are examining payments allegedly made for brand usage and whether those transactions complied with foreign exchange regulations.
According to a Vedanta spokesperson, “We are extending full cooperation to the authorities and are providing all information sought. The company remains committed to compliance with all applicable laws and regulations”.
According to the sources, the operation has now concluded, and the officials will now analyse the documents and records collected during the operation before deciding on the next steps in the matter.
Further details are awaited as investigators review the materials collected.
The ED was yet to issue an official statement on the searches.
Meanwhile, Vedanta Limited informed stock exchanges last month that the Supreme Court of India ruled against its subsidiary Talwandi Sabo Power Limited (TSPL) in a case related to alleged misdeclaration of power availability, resulting in a penalty payout of nearly Rs 127 crore along with applicable late payment surcharge.
In a regulatory filing, Vedanta said it had received a disclosure from TSPL regarding a judgment dated May 20, passed by the apex court in appeals filed by Punjab State Power Corporation Limited (PSPCL) and Punjab State Load Despatch Centre (PSLDC).
–IANS
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