Vedanta News Today: Company gets a shock - information about big fine given in exchange filing:

Vedanta Limited, a prominent mining and metals company, has recently faced several penalties and fines across various operational aspects.

1. Customs Authority Penalty: On October 8, 2024, Vedanta received an order from the Office of the Commissioner of Customs in Tuticorin, Tamil Nadu. The order imposed a penalty of ₹92.04 crore and a fine of ₹10 crore, along with demands for customs duty and applicable interest. The issue pertains to the pre-import condition applicable to imports against advance authorization. Vedanta stated that it does not anticipate any material financial impact from this order and is considering further actions.

2. GST Reverse Charge Mechanism Penalty: Between fiscal years 2017-18 and 2019-20, Vedanta was penalized ₹1.07 crore by the GST and Central Excise Office in Jharsuguda. The penalty relates to the payment of GST under the reverse charge mechanism on certain supplies during that period. The company plans to challenge the order before the Appellate Authorities.

3. Service Tax Penalty: For the period from April 2016 to June 2017, Vedanta faced a penalty of ₹10.4 lakh concerning unpaid service tax on various services. The company intends to file an appeal against this order, expecting a favorable outcome without significant financial impact.

4. Ferro Alloys Corporation Limited (FACOR) Disclosure Fine: Vedanta's subsidiary, Ferro Alloys Corporation Limited, was fined ₹5 lakh for inadequate disclosure in the Board’s Report for the financial year 2015-16. This penalty pertains to a period before Vedanta's acquisition of FACOR under the Insolvency and Bankruptcy Code, 2016.

5. Hindustan Zinc Limited Board Composition Fine: On March 17, 2025, Hindustan Zinc Limited, a subsidiary of Vedanta, received notices from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) imposing fines for non-compliance with Regulation 17(1) of the SEBI Listing Regulations. The regulation mandates the composition of the board of directors, including the number of independent directors. The company acknowledged the notices and is reviewing the matter to ensure compliance.