Vedanta faces ₹320 crore penalty over Videocon’s unpaid cess in Ravva oil and gas block

Vedanta Ltd announced on Wednesday, November 13, 2024 that it received an order to pay a penalty, along with an oil industry development cess and applicable interest, totaling ₹320 crore.

The demand pertains to the unpaid cess on behalf of Videocon Industries Ltd, a partner in the Ravva oil and gas block, for the period between December 2019 and March 2023, according to Vedanta’s exchange filing.

Vedanta clarified that, as this demand is solely for Videocon’s share of the cess, there is no penalty on Vedanta’s share.

The order was issued by the Visakhapatnam Central GST Commissionerate, and Vedanta is assessing the option to appeal before an appropriate authority. The company emphasised that this order will have no operational or financial impact on its own financials.

For the September quarter, Vedanta reported a consolidated net profit of ₹4,352 crore, with revenue at ₹37,171 crore. On Wednesday, Vedanta’s shares closed at ₹434.75 on the National Stock Exchange, down by 2.3%.