A significant development has occurred in the legal proceedings against Vedanta , Hindustan Zinc Limited (HZL), and Vedanta Resources, as a Supreme Court judge has recused from hearing a public interest litigation (PIL) alleging financial irregularities, regulatory violations, and price manipulation by these companies.

PIL Allegations

The PIL, which cites a report by Viceroy Research, raises serious concerns about the financial practices of the companies involved. The allegations include:

• Financial manipulation
• Price rigging
• Regulatory violations
• Draining of listed Vedanta through large dividends and artificial brand fees
• Taking loans to purchase shares without proper disclosure of related-party transactions

Additionally, the petition claims that HZL failed to disclose pending litigation and statutory dues.

Regulatory Inaction Alleged

The petitioner has pointed out that regulatory authorities, including the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI), and the Ministry of Corporate Affairs, have not responded to representations made by Viceroy Research regarding these issues.

Calls for Investigation

The PIL seeks directions for a comprehensive investigation by these regulatory bodies into the alleged violations. This request underscores the seriousness of the claims and the potential impact on investors and the market.

Case to be Heard by New Bench

Following the recusal of the Supreme Court judge, the case will now be listed before a different bench for further hearing. This move ensures that the matter will be heard afresh, maintaining the integrity of the judicial process.

The recusal and subsequent relisting of the case highlight the complexity and sensitivity of the allegations against these major players in the Indian mining and metals sector. As the case progresses, it will be closely watched by investors, regulatory bodies, and the wider business community for its potential implications on corporate governance and financial practices in India's corporate landscape.

Stakeholders and the public will be keenly awaiting the outcome of this case, which could have far-reaching consequences for the companies involved and potentially set precedents for corporate accountability and regulatory oversight in India.

Vedanta Limited has achieved a significant milestone in its expansion efforts, securing the position of preferred bidder for the Punnam Manganese Block in Andhra Pradesh. This development comes as part of the state government's initiative to auction mineral blocks, potentially boosting Vedanta's presence in the manganese mining sector.

Auction Details

The Department of Mines & Geology, Government of Andhra Pradesh, initiated the tender process on July 10, inviting bids for the grant of a Composite License for the Punnam Manganese Block. Vedanta Limited successfully participated in the live e-auction after qualifying in the initial bid stage.

Block Specifications

The Punnam Manganese Block, spanning an area of 152.00 hectares, is currently at the G4 level of exploration. This classification indicates that the block is at a reconnaissance stage of exploration, suggesting potential for further development and resource assessment.

Notification and Next Steps

Vedanta received the 'Declaration of Preferred Bidder' notification on September 18, at 12:10 pm IST. However, the company's journey to secure the Composite License is not yet complete. The final grant of the license by the Government of Andhra Pradesh is subject to several conditions:

1. Payment of Performance Bank Guarantee
2. Completion of other terms and conditions outlined in the Tender Document
3. Obtaining necessary approvals, permissions, and clearances from various Government Departments and Agencies
4. Execution of required agreements and deeds

Implications for Vedanta

This development aligns with Vedanta's strategic goals to expand its mineral resource portfolio. Manganese is a crucial element in steel production and various other industrial applications. By securing the preferred bidder status for this block, Vedanta positions itself to potentially enhance its manganese production capabilities, subject to successful exploration and development of the block.

Market Impact

As of the latest available data, Vedanta Limited's stock performance on the day of this announcement was not provided. Investors and market analysts will likely be watching closely to see how this development might influence the company's future growth prospects and stock valuation.

Vedanta Limited's pursuit of the Punnam Manganese Block demonstrates the company's commitment to expanding its mineral assets and strengthening its position in the mining sector. As the process moves forward, stakeholders will be keenly observing the fulfillment of the necessary conditions and the potential impact on Vedanta's operations in the manganese market.