My name is an anonymous Indian citizen, and I am writing to spotlight a monumental corporate scandal involving Vedanta Limited, Hindustan Zinc Limited (HZL), Bharat Aluminium Company (BALCO), and Sesa Goa. A scandal of this magnitude is not a frivolous matter - it is a serious crime that has seen tens of thousands of crores lost to the Indian government. The high-level fraud committed by these corporations ranges from illicit mining & royalty evasion to financial fraud & tax evasion.

 

Moreover, regulatory violations and corporate governance failures are at the heart of this scandal, leaving innocent Indian citizens to bear the brunt of such gross misconduct. Allegedly, there has also been a misuse of electoral bonds for political influence, further distinct these corporations' lack of corporate ethics and unconscionable practices.

I stand before you today, not just as a private citizen affected by these corporate frauds but as a representative of numerous other Indian citizens who have watched these corporations embezzle with impunity. We need our government to intervene and rectify the wrongs inflicted upon us by these corporations' criminal activities. Let this serve as a call for accountability, fairness, and justice.

The disinvestment of Bharat Aluminium Company Limited (BALCO) and Hindustan Zinc Limited (HZL) is one of India’s biggest corporate scams, involving massive financial irregularities, undervaluation of assets, violations of shareholder agreements, and a loss of over thousands of crore to the public exchequer.

Despite being highly profitable PSUs, BALCO & HZL were sold at throwaway prices to Vedanta Group, which has since manipulated financial records, evaded taxes, violated agreements, and deprived the government of rightful dividends. This scandal exposes how India's strategic mineral resources were illegally handed over to a private monopoly.

 

Key Corruption & Irregularities by Vedanta (26 Points)

 

1️⃣ Disinvestment at Throwaway Prices

1. BALCO was sold for just ₹551 crore in 2001, despite having assets worth thousands of crores.

2. HZL’s 64% stake was sold in phases at a fraction of its actual worth, leading to thousands of crore+ loss to the exchequer.

3. Land, mines, and power plants were ignored in valuation, leading to massive undervaluation.

4. The valuation process was manipulated to benefit Vedanta while causing losses to the public sector.

 

2️⃣ Violation of Shareholder Agreements & Govt Inaction

5. The Government had Veto Power (Article 4.5, BALCO Shareholder Agreement) but never used it despite clear violations.

6. The Kapasan Zinc Smelter project (HZL) was never built, violating the 2002 Shareholder Agreement, yet the government imposed no penalties.

7. BALCO’s alumina refinery was shut down illegally, and assets were later sold as scrap.

8. BALCO’s expansion plans were never completed, violating commitments made during disinvestment.

9. Vedanta failed to invest the promised ₹6,000 crore in BALCO’s expansion and instead diverted resources elsewhere.

10. BALCO’s coal mines and bauxite reserves were misused to benefit Vedanta’s other businesses.

 

3️⃣ Financial Manipulations, Tax Evasion & Possible Money Laundering

11. Dividends to Govt Stopped – Vedanta did not pay BALCO dividends for years, despite 5X production growth.

12. HZL Dividends Misused – HZL paid ₹30,000+ crore in dividends since 2013, but the government received only a fraction.

13. BALCO’s financial records were manipulated – Loans taken for BALCO’s expansion may have been diverted to Vedanta’s private projects.

14. Possible money laundering – Funds from BALCO & HZL may have been siphoned into Vedanta’s global operations.

15. Massive tax evasion – Suspiciously low royalty payments for zinc, lead, and silver mining operations at HZL.

16. Artificial price inflation of raw materials – Vedanta manipulated metal prices to reduce profits shown in BALCO & HZL, lowering its tax liabilities.

 

4️⃣ Illegal Closure & Sale of Government-Owned Assets

17. BALCO’s alumina refinery was shut down & dismantled without government approval, causing a direct loss of ₹6,000 crore.

18. Railway Freight & Metal Trade Manipulations – Vedanta allegedly received preferential railway tariffs, causing losses to Coal India & Indian Railways.

19. Illegal use of BALCO’s coal blocks, bauxite mines & power plants to benefit Vedanta’s private operations.

20. HZL’s mining records manipulated – Indian Bureau of Mines & State Mining Departments reported conflicting production & royalty figures.

5️⃣ Govt’s Failure to Take Action & Cover-Ups

21. CAG audit reports were never fully tabled in Parliament, hiding critical details of the disinvestment scam.

22. The Supreme Court had questioned the validity of HZL’s disinvestment, but the government ignored calls for investigation.

23. The government is now planning to sell its remaining 29.54% stake in HZL, instead of reclaiming control over these national assets.

24. Despite multiple violations, the government never exercised its right to reclaim BALCO & HZL.

25. Documents related to BALCO & HZL disinvestment are being suppressed, violating RTI laws and public accountability.

26. Vedanta’s corporate structure was manipulated through offshore mergers, allowing them to avoid legal scrutiny in India.

 

Our Demands:

📢 Joint Parliamentary Committee (JPC) Inquiry – A Parliament-led investigation into the illegal disinvestment of BALCO & HZL.

📢 Comptroller & Auditor General (CAG) Audit – A full disclosure of financial mismanagement and undervaluation of assets in disinvestment.

📢 Central Bureau of Investigation (CBI) Probe – A detailed investigation into corporate fraud, illegal transactions, and money laundering by Vedanta.

📢 Enforcement Directorate (ED) Investigation – A probe into possible FEMA & PMLA violations, tax evasion, and financial misreporting by Vedanta.

📢 Immediate Halt to HZL & BALCO Stake Sale – Instead of selling its remaining 29.54% & 49% stake, the government must reclaim its majority control over HZL.

📢 Legal Action Against Officials & Executives – Those involved in undervaluation, fraud, and public asset theft must be held criminally accountable.

This is a fight to protect India’s resources, economy, and national interest. Vedanta’s unchecked monopoly over India's aluminum, zinc, silver, and mineral wealth must be stopped.

Join me in calling for an immediate, unbiased, and thorough investigation into these corporations, their illicit behavior, and their financial transactions. Together, we can stand up against corporate malpractice and rampant corruption. Stand with me, sign this petition, and help restore faith in our corporate and government systems.