Vedanta Aluminium Denies ₹233 Crore Illegal Water Extraction Charges in Odisha

05 May 2026, 11:04 by Vinay Kakkad · KalingaTV

Vedanta Aluminium has publicly denied recent allegations about illegally extracting water from the Kherwal Nallah in Odisha’s Kalahandi district. In a statement, the company said the claims—especially the supposed ₹233 crore liability—rest on “incorrect assumptions” and a misunderstanding of how their operations actually work. Vedanta insists its water use stays well within the scope of its legal permits, and says the figures cited in government notices just don’t match what’s happening on the ground. The company says it stays committed to sustainable practices and following regulations, and plans to challenge the findings through official channels.

This pushback comes after the Odisha state government hit the company with a demand notice earlier this week. Authorities, citing an investigation into local resource depletion, claimed Vedanta had been taking more water from the river system than it was allowed—apparently for quite some time. The ₹233 crore fine is meant to cover the cost of what officials are calling “illegal extraction.” Local environmental groups and people in the community have raised concerns about how industrial water use is affecting the Kherwal Nallah, which is critical for local farming and the region’s ecology.

For the last couple of days, the issue has dominated headlines in the region. What started as a dispute over water rights and the environment has ramped up into a major legal and financial battle. At first, the focus was on the alleged scale of the unauthorized extraction and the huge fine, but now the story is all about disagreements over the data and how the rules are being interpreted. As Vedanta prepares its legal response, the case is sparking much bigger conversations about corporate responsibility and the protection of natural resources in Odisha.