On the 26th of Nov, Monday, Vedanta hit a new low at Rs.191.10 and another one on 27th at Rs.190.60. Today, it is very well entrenched in the green, bouncing back with vigour, the stock price rose almost 4% to Rs.200.45.
The National Green Tribunal formed a three-member committee to examine the shutdown of Vedanta’s Sterlite copper plant in Thoothukudi, Tamil Nadu. It was defending the company at the ongoing case between Sterlite and the TN Government, which is all for closure of the plant.
Arguing its point, the NGT said that that the shutdown was unsustainable against the principles of natural justice. It said that there were insufficient grounds to permanently close Vedanta's copper smelter and the TN Government’s decision to shut it amounted to administrative overreach.
The three-member panel said that the TN authorities had failed to comply with the procedures before shutting down the smelter and the company was not given any notice or opportunity to explain its position.
This argument comes as a boost to the company’s morale as the TM Govt has ordered permanent closure of the smelter in May after 13 people protesting to demand its shutdown on environmental concerns were killed in a police firing.
The Environment court is to give its verdict on 7th Dec.