Indian miner Vedanta’s demerger faces government objection, CNBC-TV18 reports

Indian miner Vedanta’s demerger is facing objection from the federal government, CNBC-TV18 reported on Wednesday, after the company received a warning from the markets regulator for non-compliance.

Shares of the company fell 2.4% to hit session’s low after the report.

Vedanta, led by billionaire Anil Agarwal, aims for a sweeping overhaul to carve itself up into multiple separate businesses, in a move aimed at shoring up the group’s financial performance.

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India’s National Company Law Tribunal has deferred Vedanta’s demerger case hearing to September 17 after the federal government objected to the split, claiming it has “serious objections,” the CNBC-TV18 report said.

The federal government has flagged concealment and non-disclosure of key details for the demerger as well as “inflated revenues” and “concealed liabilities,” it added.

Vedanta did not immediately respond to a Reuters request for comment.