Panaji: Goa Congress president Girish Chodankar has written to the Securities and Exchange Board of India (SEBI), urging it to withhold listing permission for Vedanta Iron & Steel Limited (VISL) until VISL discloses the liability of approximately Rs 16,500 crore owed to the government.
Alleged Illegal Exports
Chodankar said the liability arises from the alleged illegal export of iron ore from Vedanta’s Goa mines, in violation of lease conditions that restricted extraction to captive use. He alleged that this liability was not disclosed in the demerger documents under which Vedanta Limited’s iron ore mines in Goa and the Amona pig iron plant were transferred to VISL on May 1, 2026.
Listing and SEBI Action
VISL is scheduled to be listed on the stock exchange on Monday. Chodankar has requested SEBI to immediately issue a show-cause notice to VISL for non-disclosure of a material contingent liability, and to require Vedanta to furnish a Rs 16,500 crore bank guarantee to the government as a precondition for listing. The state Congress president also sought an independent inquiry into whether the demerger scheme presented to the NCLT and SEBI misrepresented the iron ore liability.
Investor Concerns
He highlighted that investors purchasing VISL shares at listing would be unaware of the unresolved liability attached to the mining assets. According to the letter, about 31% of the iron ore produced from Vedanta’s Goa mines, operated by Sesa Goa Limited, was exported commercially beyond the captive-use authorisation permitted under state mining leases.
He said the NCLT-approved demerger does not absolve VISL of its disclosure obligations as a listed entity.
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