The searches, which have now concluded, are connected to alleged brand fee payments made by Vedanta Group entities to their parent company. Officials said the agency collected documents and records related to the transactions under examination as part of its FEMA probe.
According to officials, ED teams carried out searches at one location in Delhi and one location in Mumbai. The operation commenced on Monday and concluded after investigators secured relevant financial records and agreements linked to the payments under scrutiny.
Authorities are reviewing the financial documents and contractual agreements associated with the alleged brand fee payments. Investigators are examining whether the transactions related to brand usage complied with applicable foreign exchange regulations and FEMA provisions.
Responding to the development, a Vedanta spokesperson stated that the company is extending full cooperation to the authorities and is providing all information sought during the investigation. The spokesperson added that the company remains committed to compliance with all applicable laws and regulations.
Sources said the search operation has concluded and officials will now analyse the documents and records collected during the exercise before determining the next course of action in the matter. Further details are expected as investigators continue reviewing the materials obtained during the searches.
The Enforcement Directorate had not issued an official statement on the searches at the time of reporting.
The development comes amid another legal setback involving Vedanta Limited. Last month, the company informed stock exchanges that the Supreme Court of India ruled against its subsidiary Talwandi Sabo Power Limited (TSPL) in a case related to the alleged misdeclaration of power availability.
In a regulatory filing, Vedanta stated that it had received a disclosure from TSPL regarding a judgment dated May 20 delivered by the apex court in appeals filed by Punjab State Power Corporation Limited (PSPCL) and Punjab State Load Despatch Centre (PSLDC). The ruling resulted in a penalty payout of nearly Rs 127 crore along with the applicable late payment surcharge.
The ED searches and the ongoing review of financial transactions place renewed focus on regulatory compliance within one of India’s largest business groups. The findings of the FEMA investigation and the analysis of the seized records are expected to determine the future course of the case.
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