Vedanta Ltd has firmly denied Viceroy Research's latest report accusing the company of routing ₹2,500 crore in a suspicious loan deal through Vedanta Semiconductors Pvt. Ltd (VSPL). The mining giant called the allegations “baseless” and insisted that the transactions followed all legal and corporate governance standards.
This response came after US-based short seller Viceroy Research released a report on July 18, 2025, alleging that Vedanta routed a large loan under the guise of VSPL business to remit brand fees to its parent company amid a liquidity crisis.
Vedanta Clarification: No Sham
Operations Involved
In an official statement cited by PTI on
Sunday, July 20, 2025, a Vedanta
spokesperson said:
Vedanta strongly rejects the baseless
allegations made in the report regarding Vedanta Semiconductors Pvt Ltd (VSPL).
All business activities of VSPL have been transparently disclosed and are in
line with statutory norms.
The company further clarified that all loan terms, interest rates, and collateral were accurately reported and in compliance with Indian laws.
What Viceroy Research Alleges
Viceroy Research, which publicly disclosed its
short position in Vedanta Resources’ debt
on July 9, 2025, made the following allegations:
·
₹2,500
crore was routed through a low-activity entity (VSPL) in what they
called a “sham operation”.
·
The aim, they claim, was to secretly pay brand fees to the parent company,
Vedanta Resources Ltd (VRL), during a severe
liquidity crunch.
·
The report was provocatively titled:
Vedanta – Vedanta Semiconductor: ₹2,500
Crore Dhoke Ka Sammraajy (Empire of Fraud).
According to the report, the routing was done under pressure to make brand fee payments and to mask the April 2024 liquidity crisis. They claimed that by the time the loan was disbursed, the brand fees had already been paid and the money was instead used to fund Vedanta May 2025 dividend.
Vedanta Response to Allegations
Vedanta responded with a clear message to its
stakeholders and the public:
“We urge all stakeholders to rely on verified disclosures and audited financial statements. These
transactions are fully compliant with all laws and governance norms.”
They rejected the suggestion that VSPL was created or revived as a dummy entity. Vedanta claims VSPL is operationally active, and not just a paper company doing zero-margin trades.
Viceroy Criticizes Indian
Regulators
Viceroy report also took aim at Indian
regulators:
“While credit analysts are snoozing through
the alarm bells, India’s regulators are famously light sleepers.”
They argued that VSPL needs a 24-month operational illusion to fulfill its offshore obligations and hide April 2024’s financial troubles.
The Bigger Picture: What’s at
Stake?
The core of the debate is about transparency, governance, and intent. If Viceroy’s claims are true, it questions Vedanta’s corporate governance. However, if Vedanta’s defense holds up under regulatory scrutiny, Viceroy’s report might be viewed as an aggressive short-seller attack on a large Indian conglomerate.
Vedanta Share Price Movement
Vedanta stock remained relatively stable despite the controversy. On Friday, July 18, 2025, the share closed at:
| Date | Closing Price (₹) | Change |
|---|---|---|
| July 17, 2025 | ₹444.25 | — |
| July 18, 2025 | ₹445.70 | 🔼 +0.33% |
Data Source: BSE
Summary Table
| Claim/Action | Vedanta’s Response |
|---|---|
| ₹2,500 crore loan routing claim | Fully compliant, legally executed |
| Use of VSPL as sham entity | Strongly rejected, VSPL is operational |
| Remittance for brand fees | Loan used as per norms, disclosed in filings |
| Stakeholder advice | Rely on audited financial statements |
| Short seller position | Publicly disclosed by Viceroy |
