The mining major has come under the watch of global human rights NGOs for its proposed project at the Niyamgiril Hills in Orissa for mining bauxite. The NGOs have alleged that the plant would displace the tribals in the area.

Vedanta's alumina refinery at Lanjigarh, Orissa, and planned bauxite mine in the nearby Niyamgiri Hills came to the the Church's ethical investment advisory group's (EIAG) attention in June 2009.

Two of the Church's bodies, the Church Commissioners and the Church of England Pensions Board, sold their shares in the firm on the advice of the Church's EIAG which examined the alleged human rights violations by the company in Orissa.

"The EIAG advised disinvestment because its engagement with the company had produced no substantial results and the EIAG believed it would be inconsistent with the Church investing bodies' joint ethical investment policy to remain invested given its concerns about the company's approach to relations with communities where it operates," a statement from the Church of England said.

When contacted a Vedanta spokesperson in India said, "We are disappointed by the Church of England's decision to sell their holding in Vedanta. Vedanta remains fully committed to pursuing its investments in responsible manner, respecting the environment and human rights. PTI