New Delhi: The Enforcement Directorate (ED) on Tuesday conducted simultaneous searches at the offices of mining and natural resources giant Vedanta Group in Delhi and Mumbai as part of an investigation into alleged violations of the Foreign Exchange Management Act (FEMA).

According to sources, the searches are linked to suspected irregularities in cross-border financial transactions and fund transfers. ED officials continued their search operations through the day, while details regarding the exact nature of the alleged violations have not yet been officially disclosed.

The company has not issued any official statement on the searches so far.

Rating upgrade came days before raids

The development comes just days after rating agency ICRA upgraded the long-term rating of key Vedanta entities to AA+, the group's highest domestic credit rating in nearly a decade. The upgrade reflected the company's improved financial position and lower credit risk profile.

However, the ED action has now placed the group under fresh regulatory scrutiny.

About Vedanta Group

Vedanta is among India's largest natural resources conglomerates, with interests spanning zinc, silver, oil and gas, aluminium, iron ore, steel and copper. Its major subsidiaries include Hindustan Zinc Limited and Cairn Oil & Gas.

The group is controlled by businessman Anil Agarwal.

Previous FEMA-related case

This is not the first time the Vedanta group has faced scrutiny over foreign exchange regulations. In 2004, Vedanta's predecessor company, Sterlite Industries, and three of its promoter-directors were found guilty of violating provisions of the erstwhile Foreign Exchange Regulation Act (FERA) and FEMA. The ED had imposed penalties on the company and its directors in that case.