ESL Steel, a subsidiary of Vedanta Iron & Steel Limited, has received five Show Cause Notices (SCNs) from the Registrar of Companies (RoC), Ranchi, alleging non-compliance with provisions of the Companies Act, 2013. The notices relate to historical matters covering FY16 to FY21.
The alleged violations pertain to board approvals for Key Managerial Personnel (KMP) appointments, committee composition, Whole-time Director remuneration approvals, and managerial remuneration disclosures.
The company has stated that the notices are procedural and governance-related, with no impact on its financial position, operations, or business continuity.
ESL Steel has indicated that it is reviewing the notices and will take appropriate legal and regulatory steps, including filing responses before the concerned authorities.
While the development does not affect day-to-day operations, it underscores the importance of strong corporate governance and regulatory compliance, particularly for companies within large industrial groups.
