Action Aid has recently spoken out against the Indian government for not acting against Vedanta Resources for alleged human rights violations.

Although the London-based mining company denies the allegations, the accusation from the international NGO come as another British investor removed its stake citing serious concerns about Vedanta’s approach to human rights and the environment.

The Joseph Rowntree Trust announced its withdrawal just after the Church of England announced its removal from the project citing similar concerns. The company, along with two other investors, has sold its shares of the project totaling GBP two million.

Vedanta has been widely criticised by activist groups who claim the company’s projects will have a damaging impact on the environment and the wellbeing of local people. The allegations are generally centered around the company’s activity in the Niyamgiri Hills in Orissa that is said to threaten the environmental diversity and the livelihood of the Dongria Kondh that live in the region.

All decisions to withdraw have been welcomed by Action Aid who praises the companies for forming a “principled stand against a company under fire for its ethics,” according to Meredith Alexander, head of trade and corporates for the NGO.

“Companies from across the world are withdrawing their stakes from Vedanta. But the Indian government is not listening to the voices of 8,000 Kondh tribals in Orissa,” said Action Aid officer Parvinder Singh.

Action Aid claims there has been “widespread human rights violations” by the Vedanta project in the Niyamgiri ranges in the Kalahandi district of Orissa and called on the government to take action against the mining giant.

But Vedanta isn’t taking the accusations lightly and has since lashed out against Action Aid and other organizations opposing the project.

“Vedanta is coming up with enormous investments in Kalahandi with highly focused socioeconomic programmes for the uplift of the the underpriviledged people of the region, including the Dongria Kondh tribals,” said Vedanta Aluminium chief operating officer Mukesh Kumar.

“It is very surprising how these NGOs are challenging the highest judiciary, the country’s robust regulatory system, and sovereignty and the integrity of the Government of India,” he added.

Additionally, Kumar claims the company will invest more than Rs 6 billion in the socioeconomic development of the region once its mining projects are commissioned.

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By Taylor Turner