Vedanta : Press Statement with reference to the SEBI order of March 12, 2024

PRESS STATEMENT

With reference to the SEBI order of March 12, 2024, directing Vedanta Ltd to pay Rs 77.6 crore to Cairn UK Holdings Ltd, now Capricorn UK Holdings Limited (CUHL) as an interest payment for delayed payment of Rs 667 crore in dividend in the period between April 2016 and June 2017, the company wants to clarify the following:

The dividend payment by Vedanta Ltd. to CUHL was under a tax dispute between Cairn UK and Government of India. The said dividend amount was deposited in an "unpaid dividend account" as per law and was to be released by Vedanta Ltd. as per the orders of the Income Tax Department and which was subsequently released post orders of the Department and no benefit, whatsoever was derived by Vedanta Ltd. In fact, Para 111 of the SEBI order explicitly says that Vedanta Ltd. / Cairn India Ltd. deposited unpaid dividend amount in special account called unpaid dividend account and it "did not benefit from the unpaid dividend amount during April 01, 2016 to June 15, 2017".

When Cairn UK reached a settlement with the Government of India in its tax dispute, all dues were cleared including the said dividend amount. Also, as per the settlement with GOI on the tax dispute, Cairn UK undertook to surrender its rights to claim interest on such tax refund (arising on account of this dividend).

There was absolutely no intent on the part of Vedanta Ltd to withhold the dividend payment from CUHL. Vedanta Ltd. has an exemplary record in payment of dividends. Vedanta Ltd. has paid out dividends of over Rs. 84,000 crores to shareholders in the last ten years. It has never delayed, or been penalised for, any dividend payment. The amount of Rs. 667 crore is a very small amount in the context of the amount of dividend Vedanta Ltd pays. It defies logic and the company's exemplary record to withhold payment to any shareholder.

It was purely the unique circumstances that Cairn UK found itself in with the Income Tax department of the Government of India in 2016-17 that led to the "delay".

Vedanta Ltd. will appeal the SEBI order before the appropriate forum.

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About Vedanta Limited

Vedanta Limited ("Vedanta"), a subsidiary of Vedanta Resources Limited, is one of the world's leading natural resources companies spanning across India, South Africa, Namibia, Liberia, UAE, Korea, Taiwan and Japan with significant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, Nickel, Aluminium, Power & Glass Substrate and foraying into semiconductors and display glass. For two decades, Vedanta has been contributing significantly to nation building. Governance and sustainable development are at the core of Vedanta's strategy, with a strong focus on health, safety, and environment. Vedanta has put in place a comprehensive framework to be the ESG leader in the natural resources sector, is committed to reducing carbon emissions to net zero by 2050 or sooner and aims to spend $5 billion over the next 10 years to accelerate this transition. Giving back is in the DNA of Vedanta, which is focused on enhancing the lives of local communities. Anil Agarwal Foundation, the umbrella entity for Vedanta's social initiatives, has pledged Rs 5000 crore over the next five years on various social impact programs and its flagship project, Nand Ghar is setting up model anganwadis across India. Vedanta Ltd. has been listed in Dow Jones Sustainability World Index 2022, conferred Golden Peacock Award for excellence in Corporate Governance 2022 and certified as a Great Place to Work 2023. Vedanta Limited is listed on the Bombay Stock Exchange and the National Stock Exchange.

For more information, please visit www.vedantalimited.com

For any media queries, please contact:

Ms. Ritu Jhingon, Group Director - Communications, Ritu.Jhingon@vedanta.co.in

Mr. Mukul Chhatwal, Group Head - PR & Media Relations, Mukul.Chhatwal@cairnindia.com

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