Vedanta Limited disclosed that its subsidiary, Talwandi Sabo Power Limited (TSPL), has received an adverse judgment from the Hon'ble Supreme Court of India. The order, dated May 20, 2026, arises from appeals filed by Punjab State Power Corporation Limited (PSPCL) and Punjab State Load Despatch Centre (PSLDC). The court has set aside a previous judgment by the Appellate Tribunal for Electricity (APTEL) and restored the order passed by the Punjab State Electricity Regulatory Commission (PSERC).

The Supreme Court upheld the alleged penalty on TSPL regarding the misdeclaration of availability for January 2017 in terms of the Grid Code. Consequently, the subsidiary is liable to pay a financial penalty. The disclosure was made by Vedanta Limited to the stock exchanges on behalf of TSPL, as the shares of the latter are currently in the process of listing.

Financial Impact

The judgment carries a direct financial implication for the subsidiary. The court order specifies that TSPL must pay the penalty amount along with any applicable late payment surcharges to PSPCL. The company confirmed that the financial impact has been quantified.

The order resolves the appeals preferred by PSPCL, which challenged the earlier APTEL verdict. By restoring the PSERC order, the Supreme Court's decision concludes the legal proceedings regarding the specific violation of the Grid Code. TSPL has acknowledged the receipt of the order and the consequent liability.

Vedanta Limited has issued guidance to its shareholders on the apportionment of cost of acquisition of equity shares, following the successful implementation of its Composite Scheme of Arrangement under Regulation 30. The scheme came into effect on May 01, 2026, which also serves as the Appointed Date under the scheme. The communication was signed by Company Secretary & Compliance Officer Prerna Halwasiya and filed with stock exchanges on May 16, 2026.

Scheme Background and NCLT Approval

The Hon'ble National Company Law Tribunal, Mumbai Bench, sanctioned the Composite Scheme of Arrangement vide its orders dated December 16, 2025 and January 09, 2026. The scheme provides for the demerger, transfer, and vesting of four distinct business undertakings from Vedanta Limited into four separate resulting companies on a going concern basis:

• Aluminum Undertaking — transferred to Vedanta Aluminium Metal Limited (Resulting Company 1)
• Merchant Power Undertaking — transferred to Talwandi Sabo Power Limited (Resulting Company 2)
• Oil and Gas Undertaking — transferred to Malco Energy Limited (Resulting Company 3)
• Iron Ore Undertaking — transferred to Vedanta Iron and Steel Limited (Resulting Company 4)

In accordance with the scheme, each resulting company issued and allotted 1 (One) fully paid-up equity share for every 1 (One) fully paid-up equity share held in Vedanta Limited, to shareholders whose names were recorded in the register of members and/or records of the depository as on the Record Date, i.e., May 01, 2026.

Cost of Acquisition Apportionment Ratios

For the purpose of determining the post-demerger cost of acquisition of equity shares, shareholders may apportion their total cost of acquisition of Vedanta Limited across the five entities as follows. These ratios have been determined based on the net worth of the company and the net assets of the respective undertakings, in accordance with Section 73 of the Income-tax Act, 2025.

Shareholder Advisory

Vedanta Limited has clarified that the above communication is intended solely as general guidance for shareholders and should not be treated as a substitute for independent professional advice. The company has noted that regulatory, statutory, or judicial authorities, including assessing officers or appropriate appellate authorities, could take a different view on the matter. Shareholders have been advised to consult their own consultants or tax advisors to understand the specific tax implications applicable to their individual circumstances. The company has explicitly stated that it takes no express or implied responsibility or liability in relation to this guidance.