Panaji, Jun 14 (PTI) The Congress' Goa unit on Sunday urged capital market regulator Sebi to withhold the listing of Vedanta Iron and Steel Limited (VISL), alleging that its parent company Vedanta Ltd failed to disclose its Rs 16,500-crore liability linked to mining operations in Goa.

Vedanta group's four demerged businesses are expected to list on the BSE and NSE on Monday. Besides Vedanta Ltd, which is already listed, the shares of four newly created entities --Vedanta Aluminium Metal (VAML), Vedanta Oil & Gas (VOGL), Vedanta Power and Vedanta Iron & Steel (VISL) -- will begin trading on Indian stock exchanges.

In a letter addressed to the Sebi Chairperson, Goa Pradesh Congress Committee (GPCC) president Girish Chodankar on Sunday urged the Securities and Exchange Board of India (Sebi) to withhold the listing permission granted to VISL.

According to him, Vedanta failed to disclose a contingent liability of Rs 16,500 crore linked to iron ore mining in Goa.

The liability pertains to revenues generated from the alleged illegal commercial export of iron ore extracted from Goa mines that were originally leased for captive use, the letter said.

Chodankar claimed that once VISL begins trading, the legal and practical ability to hold Vedanta accountable for the alleged dues owed to the people of Goa would be severely compromised because of the demerger structure.

"Sebi must act before June 15," he said in the letter.

According to Chodankar, Vedanta Limited transferred its iron ore undertaking, including Goa iron ore mines and the Amona pig iron plant, to the newly incorporated VISL with effect from May 1 this year.

He alleged that around 31 per cent of the total iron ore production from Vedanta's Goa mines was commercially exported despite the leases permitting mining only for captive consumption.

"The revenue from this illegal commercial export is estimated at Rs 16,500 crore. This sum belongs to the people of Goa and constitutes a quantified, unresolved liability of Vedanta Limited," Chodankar alleged.

The Congress leader further claimed that the liability was neither disclosed in the demerger scheme documents nor in stock exchange filings made by Vedanta Limited.

He alleged violations of various provisions of Sebi's Listing Obligations and Disclosure Requirements (LODR) Regulations, including failure to disclose material information and contingent liabilities in the demerger scheme.

Chodankar urged Sebi to withhold the listing of VISL on the NSE and BSE until Vedanta Limited makes a "full corrective disclosure" of the alleged liability.

He also sought issuance of a show-cause notice to Vedanta Limited for the alleged non-disclosure, a direction to furnish a bank guarantee of Rs 16,500 crore in favour of the Goa government, and an independent inquiry into whether the demerger scheme contained material misrepresentations or suppression of facts.

The GPCC president said permitting the listing without such disclosures would amount to a "grave injustice" to the people of Goa and undermine capital market integrity.

Vedanta's response to the allegations could not be immediately obtained. PTI RPS HVA

Disclosure obligations under LODR are challenged over alleged non-disclosure of contingent liability in a demerger listing. Sebi was urged to withhold the listing of Vedanta Iron and Steel Ltd. pending full disclosure of an alleged contingent liability linked to Goa iron ore mining operations. The complaint alleged that Vedanta Ltd. failed to disclose the liability in demerger documents and stock exchange filings, raising possible breaches of LODR disclosure obligations concerning material information and contingent liabilities. The request also sought a show-cause notice, a bank guarantee in favour of the Goa government, and an independent inquiry into the demerger scheme.