Vedanta Ltd, a mining conglomerate, announced its intention to explore legal avenues, including the filing of a review petition, following the dismissal of its plea to reopen its Sterlite copper smelter plant in Tamil Nadu by the Supreme Court last week.
According to a stock exchange filing by Vedanta, the Supreme Court concluded on February 29, 2024, that the Special Leave Petition did not warrant interference under Article 136 of the Constitution of India and subsequently dismissed the petition. Vedanta received the judgment on March 5, 2024, and is now considering legal options based on advice from its legal experts.
The Supreme Court’s decision dealt a blow to Vedanta Limited, as its plea to reopen the plant, closed since May 2018 due to pollution concerns, was denied. The Madras High Court had previously rejected Vedanta’s plea for the Sterlite Copper unit to resume operations.
Despite the setback, Vedanta’s stock on the BSE closed 1.1 percent lower at Rs 282.45 on Wednesday. The Supreme Court’s verdict came after proposing the formation of a panel of domain experts to assess the unit and suggest further compliance measures, emphasizing the importance of considering the health and welfare of local residents.
The bench, comprising Chief Justice D Y Chandrachud and justices J B Pardiwala and Manoj Misra, underscored the severity of violations and the repeated nature of breaches by the unit. While acknowledging that closing the plant was not the preferred option, the court stressed the state government’s responsibility to address the concerns of residents.
The Sterlite Copper plant has remained shut since May 2018 following a protest where 13 people were killed in police firing over alleged pollution caused by the facility.
Vedanta Resources, the parent company of Vedanta Ltd, has been working on strengthening its finances, including a recent debt restructuring effort. The company faces significant outstanding debt, including a $4.5 billion payment due by fiscal 2025, amounting to $6.4 billion in total.
