ED raids Vedanta-linked locations in FEMA probe over alleged brand fee payments

The Enforcement Directorate (ED) today carried out searches at premises linked to the Vedanta Group in Delhi and Mumbai as part of an investigation into alleged violations under the Foreign Exchange Management Act (FEMA).

The agency examined documents related to “brand fee payments” allegedly made by group companies to their parent entity. The searches, launched on Monday, were completed after teams collected financial records, agreements and transaction-related material for further analysis.

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Enforcement Directorate teams searched one premises each in Delhi and Mumbai during the operation.

The development comes at a time when regulatory oversight on overseas remittances and intra-group financial arrangements has sharpened, especially in cases involving large corporate structures and foreign exchange compliance.

Focus on brand fee transactions

According to agency officials, investigators are examining whether payments linked to brand usage and associated agreements were carried out in accordance with FEMA provisions.

The ED is reviewing the structure of the transactions, approvals involved and the nature of remittances routed through group entities. Officials said the seized records would now undergo detailed scrutiny before any further action is considered.

Vedanta says cooperating with authorities

Responding to the searches, a Vedanta spokesperson said the company is extending full cooperation to investigators and sharing all information sought by the authorities.

The spokesperson added that the company remains committed to complying with all applicable legal and regulatory requirements.

Recent legal setback for subsidiary

The ED action comes weeks after Vedanta Limited informed stock exchanges about a Supreme Court ruling involving its subsidiary Talwandi Sabo Power Limited (TSPL).

In its regulatory disclosure, the company stated that the apex court ruled against TSPL in a case linked to alleged misdeclaration of power availability. The judgment resulted in a penalty liability of nearly Rs 127 crore along with applicable late payment surcharge.

The matter arose from appeals filed by Punjab State Power Corporation Limited (PSPCL) and Punjab State Load Despatch Centre (PSLDC), according to the company’s filing.