The Enforcement Directorate on Tuesday conducted searches at premises linked to the Vedanta Group in Delhi and Mumbai as part of a Foreign Exchange Management Act (FEMA) investigation, officials said.
The searches were underway at the time of reporting. The nature of the alleged violations has not been officially disclosed. An official statement from the company was awaited.
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Shares of Vedanta Ltd., which were down over 4% on Monday, gave up their gains after the news, and are now trading 0.3% lower at ₹336.25.
In a quote to ET Bureau, Vedanta Spokesperson said, "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. As the matter is currently under regulatory process, we are unable to comment further at this stage."
Vedanta Group on Friday said that it has received its highest domestic credit rating in over a decade after rating agency ICRA upgraded the long-term ratings of its key group entities to AA+.
Securities with an AA+ rating are considered to have a high degree of safety regarding timely servicing of financial obligations. Such securities carry very low credit risk.
The Vedanta Group is one of India's largest natural resources conglomerates, with operations spanning zinc, silver, oil and gas, aluminium, iron ore, steel, and copper. Key subsidiaries include Hindustan Zinc Limited, in which the government holds a residual stake and Cairn Oil and Gas.
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The group has previously drawn regulatory scrutiny on foreign exchange matters. In 2004, the ED had found Sterlite Industries the predecessor entity that later became part of the Vedanta structure and its three promoter directors guilty of FERA and FEMA contraventions, imposing penalties on the company and its directors.
Further details are awaited.
With inputs from PTI
