New Delhi, Dec. 16 -- The National Company Law Tribunal allowed Vedanta Ltd to go ahead with a proposed demerger of its India operations, a restructuring plan that the ministry of petroleum and natural gas had opposed.

"The sanction to the company scheme is granted," the Mumbai bench of the NCLT said on Tuesday.

The bench comprising Justices Nilesh Sharma and Charanjeet Singh Gulati had reserved its order on the matter in November after extensive hearings on Vedanta's application seeking regulatory clearance for the demerger.

The petroleum ministry had raised multiple objections during the proceedings, flagging concerns over the potential financial risks arising from the restructuring, alleged misrepresentation of India's hydrocarbon a...