NCLT rejects Talwandi Sabo power unit’s scheme in Vedanta demerger
Live MintThe National Company Law Tribunal dismissed the demerger scheme filed by Talwandi Sabo Power Ltd at an initial state in a setback for the five-way spinoff of its parent Vedanta Ltd. The tribunal’s Mumbai bench, comprising judicial member Reeta Kohli and technical member Madhu Sinha, on Tuesday ruled that TSPL’s proposed demerger scheme of arrangement lacked the necessary disclosures, specifically regarding the company’s debt obligations. SEPCO Electric Power Construction Corporation, a creditor of TSPL, had raised objection to the scheme, claiming that the power unit had deliberately excluded their outstanding debt of ₹1,251 crore from the list of creditors. The tribunal said that the omission of Sepco's debt, which amounted to more than 75% of TSPL’s unsecured debt, undermined the entire process.
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