NEARLY 2,000 Zambian villagers have the right to sue mining company Vedanta in the English courts, the Supreme Court in London said today (10).
India-listed Vedanta, which delisted from London last year but maintains a legal base in Britain, appealed a lower-court ruling that a case in which villagers alleged their land was polluted by a Vedanta unit could be heard in England.
But the Supreme Court dismissed Vedanta's appeal and said the Zambian villagers could pursue their case through the English courts.
Wednesday's judgment has resonance for other multinational companies with a base in London and facing legal challenges about their operations abroad from local residents.
In a statement, Vedanta said the judgment was procedural, relating only to the jurisdiction of the English courts to hear the claims.
"It is not a judgment on the merits of the claims. Vedanta and KCM (Konkola Copper Mines) will defend themselves against any such claims at the appropriate time," it said.
Leigh Day, which represented the villagers, said in a statement the decision could have wider implications.
"I hope this judgment will send a strong message to other large multinationals that their CSR (corporate social responsibility) policies should not just be seen as a polish for their reputation but as important commitments that they must put into action," Martyn Day, senior partner at Leigh Day, said in a statement.
Oliver Holland, a solicitor at Leigh Day, said the firm would now press to bring to trial the case of the 1,826 villagers who allege their land and livelihood have been destroyed by water pollution caused by the Nchanga Copper Mine, owned by Vedanta through its subsidiary KCM.
Separately, Leigh Day is seeking the right to appeal to the Supreme Court after a lower court found Nigerians could not pursue a claim against Royal Dutch Shell in London in relation to oil spills in Nigeria's Delta region.
Leigh Day is also seeking to take a case against Unilever to the Supreme Court over a lawsuit it has brought on behalf of tea plantation workers and their families in Kenya in connection with ethnic violence in 2008.
Vedanta's legal team previously argued that Zambia was the "natural forum" for the case and said the parent company did not control operations in Zambia, which were governed by Zambian law.
Shein’s UK sales hit £2.05bn in 2024, up 32.3 per cent year-on-year, driven by younger shoppers.
The retailer benefits from import tax loopholes unavailable to high street rivals.
Faces mounting criticism over labour practices and sustainability as it eyes a London listing.
Tax edge drives growth
Chinese fashion giant Shein is transforming Britain’s online clothing market, capturing a third of women aged 16 to 24 while benefiting from tax breaks unavailable to high street rivals.
The fast-fashion retailer’s UK sales surged 32.3 per cent to £2.05bn in 2024, according to company filings, with pre-tax profits rising to £38.3m from £24.4m the previous year. The growth comes as established players like Asos struggle in an increasingly competitive landscape where young consumers prioritise value above all else.
Shein has partly benefited from a tax break on import duty for goods worth less than £135 sent directly to consumers, The rule lets overseas sellers send low-value goods to the UK tax-free, disadvantaging local businesses.
“The growth of Shein and Temu is a huge factor,” said Tamara Sender Ceron, associate director of fashion retail research at Mintel told The Guardian. “It is particularly successful among younger shoppers. It is also a threat to other fashion retailers such as Primark and H&M because of its ultra-low price model that nobody can compete with. It’s changed the market.
"The market dynamics reflect broader shifts in consumer behaviour. Online fashion sales reached £34bn last year, up 3 per cent, according to Mintel, but shoppers have become more cautious as disposable incomes shrink, and fashion competes with holidays, festivals, and streaming services for wallet share.
Scrutiny builds
Despite its commercial success, Shein faces mounting scrutiny. The company filed initial paperwork last June for a potential London Stock Exchange listing, but critics question its labour practices and environmental impact.
"Regardless of whether Shein gets listed on the London Stock Exchange, no company doing business in the UK should be allowed to play fast and loose with human rights anywhere in their global supply chains,” said Peter Frankental, economic affairs programme director at Amnesty International UK to BBC.
The “de minimis” rule has drawn renewed attention after US President Donald Trump scrapped a similar measure during his trade war with China.
Shein’s UK operation now employs 91 people across offices in Kings Cross and Manchester, focusing primarily on local market expertise.
By clicking the 'Subscribe’, you agree to receive our newsletter, marketing communications and industry
partners/sponsors sharing promotional product information via email and print communication from Garavi Gujarat
Publications Ltd and subsidiaries. You have the right to withdraw your consent at any time by clicking the
unsubscribe link in our emails. We will use your email address to personalize our communications and send you
relevant offers. Your data will be stored up to 30 days after unsubscribing.
Contact us at data@amg.biz to see how we manage and store your data.