ESL Steel Receives Show Cause Notice Over Alleged Director Remuneration Disclosure Non-Compliance
ESL Steel Limited, a subsidiary of Vedanta Iron and Steel Limited, has received a Show Cause Notice (SCN) from the Registrar of Companies, Ranchi, regarding alleged non-compliance concerning director remuneration disclosure for the financial year 2018-19.The notice was issued by the Ministry of Corporate Affairs on August 6, 2026. The allegation relates to Section 197(15) of the Companies Act, 2013, read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
The SCN pertains to the alleged failure to disclose the ratio of each Director's remuneration to the median employee's remuneration, along with other specified details, in the Corporate Governance Report or Board’s Report for FY 2018-19. ESL is currently examining the matter and plans to submit an appropriate response to the adjudicating authority within the prescribed timeline.
The details of the SCN issued by the Registrar of Companies are as follows:
| Section / Provision | SCN No. | Date of SCN | Financial Year / Period | Alleged Non-Compliance Particulars | Proposed Penalty on ESL (₹) | Proposed Penalty on Individuals (₹) |
|---|---|---|---|---|---|---|
| Section 197(15) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 | SCN/ADJ/08-2026/RN/05453 | 06-08-2026 | FY 2018-19 | Details regarding the ratio of each Director's remuneration to the median employee's remuneration were allegedly not disclosed in the Corporate Governance Report / Board's Report. | 5,00,000 | 1,00,000 on Mr. Jalaj Kumar Malpani (Ex - CFO) |
Vedanta Iron and Steel Limited stated that this matter will not have any significant financial or operational impact on ESL Steel Limited.
VISL Stock Price Movement
Today, shares of Vedanta Iron and Steel Limited shed 2.06%, closing down as the stock settled around ₹35.15 in post-market trading. The equity experienced tight intraday action, with the stock range recorded between a low of ₹34.80 and a high of ₹36.24.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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