Controversy
Balco, Korba, Chhattisgarh
A chimney under construction by Gannon Dunkerley & Company at the Balco smelter in Korba, Chhattisgarh collapsed on 23 September 2009, killing at least 40 workers. Balco and GDCL management have been accused of negligence in the incident.
Gamsberg Mine Landslide
On 17 November 2020, a mining-related "geotechnical incident" caused a landslide at the Gamsberg Mine in South Africa and 10 miners became trapped; with mining halted, eight miners were rescued, one died and one body was missing. On 18 January 2021, the company confirmed that mining operations had resumed.
Litigation
India
In respect of bauxite mines at Lanjigarh, Orissa, public interest litigations were filed in 2004 by Indian non-government organisations led by the People's Union for Civil Liberties to the supreme court sub-committee regarding the potential environmental impact of the mines. The Ministry of Environment and Forests received reports from expert organisations and has submitted its recommendations to the supreme court. The sub-committee has found "blatant violations" of environmental regulations and grave concerns about the impact of the Niyamgiri mine on both the environment and the local tribal population. The committee recommended to the court that mining in such an ecologically sensitive area should not be permitted.
In July 2025, Vedanta’s plan to clear a vast forestland in Odisha was halted by the Forest Advisory Committee after evidence surfaced that they may have fraudulently obtained consent for their plans from Adivasis and other communities in the area. Residents of the villages where Gram Sabhas were held claim Vedanta created and passed false resolutions, making Vedanta's plans in violation of the PESA Act and the Forest Rights Act.
Human rights
In February 2010, the Church of England decided to disinvest from the company on ethical grounds.
The Director of Survival International, Stephen Corry, said, "The Church’s unprecedented and very welcome decision sends a strong signal to companies that trample on tribal peoples' rights: we will not bankroll your abuses. Anybody that has shares in Vedanta should sell them today if they care about human rights."
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Vedanta responded by expressing disappointment at the church's actions, and that it is "fully committed to pursuing its investments in a responsible manner, respecting the environment and human rights".
The NGO Amnesty International has also criticised the company's record on human rights. It has said, "[I]t is clear that Vedanta Resources and its subsidiaries [...] have failed to respect the human rights of the people of Lanjigarh and the Niyamgiri Hills" adding, "The proposed bauxite mine [...] threatens the survival of a protected Indigenous community [...] However, these risks have been largely ignored and consultation with and disclosure of information to affected communities have been almost non-existent."
Several shareholders sold their shares because of human rights concerns. This includes the Joseph Rowntree Charitable Trust, the Marlborough Ethical Fund, Millfield House Foundation and PGGM. The Economic Times criticised the project in an editorial, stating that if the mine goes ahead it will "impoverish a defenceless populace, perhaps to extinction." In July 2010, the Chief Secretary of the Indian state of Orissa ordered a new investigation into the rights of the Dongria Kondh tribe affected by Vedanta Resources' bauxite mine, in what Survival International characterised as the "...third major blow to Vedanta in a month".
A four-member panel set up by the government of India in the Ministry of Environment and Forests investigated the bauxite mining proposal over Niyamgiri near Lanjigarh in the districts of Kalahandi and Rayagada in Orissa. The area has been the traditional habitat of two particularly vulnerable tribal groups, the Dongria Kondh and the Kutia Kondh. The committee submitted its report on 16 August 2010, saying "The Vedanta Company has consistently violated the Forest Conservation Act [FCA], the Forest Rights Act [FRA], the Environment Protection Act [EPA] and the Orissa Forest Act in active collusion with the State officials. Allowing mining by depriving two primitive tribal groups of their rights over the proposed mining site to benefit a private company would shake the faith of the tribal people in the laws of the land ". Based on a panel report, the government of India has served a show cause notice on the company on why its Stage I environment clearance should not be cancelled.
In October 2017, London's Court of Appeal in the case of Lungowe v Vedanta Resources plc ruled that nearly 2,000 Zambians could sue Vedanta Resources plc as a parent company in English courts over alleged pollution of their village. In concluding the same litigation in 2019, the Supreme Court of the United Kingdom confirmed that Vedanta could be sued in England concerning business liability for human rights violations and environmental damage.
Legal violations
In July 2010, Sterlite Industries, a subsidiary of Vedanta Group, received a tax notice of about ₹3.24 billion (US$34 million), and was charged with violating several rules by the excise department in India. Excise officials charged Sterlite Industries with misdeclaration because the company is alleged to have tried shipping out copper waste for the purpose of separating gold and silver when the waste also contained other precious metals like platinum and palladium. Vendanta also owes the Income Tax Department ₹10,247 crore as retrospective tax as of January 2014.
