Vedanta rejects Viceroy Research's ₹2,500 crore loan routing claim, says ‘executed in full compliance…'
Vedanta 'strongly rejects the baseless allegations made in the report regarding Vedanta Semiconductors Pvt Ltd (VSPL),' the report citied a statement by company's spokesperson.
'All business activities of VSPL have been transparently disclosed and are in line with statutory norms,' the company said.
The company spokesperson added that Vedanta Ltd. and VSPL have 'consistently reported' the accurate transaction terms, rates, and collateral as per the mandated norms.
'Loans between VSPL and Vedanta Ltd were executed in full compliance with applicable laws, corporate governance standards, and both Vedanta Ltd and VSPL have consistently reported accurate loan terms, interest rates, and collateral in line with statutory norms,' a Vedanta spokesperson told the news agency.
The company also reportedly asked the stakeholders to rely on verified disclosures and audited financial statements.
Viceroy Research openly disclosed its short position against the debt of Vedanta Resources, the parent company of the Indian mining giant, on 9 July 2025, when they claimed that the company is 'systematically draining' its Indian subsidiary.
In the latest development on the allegations saga, the US-based short seller, Viceroy Research, alleged that under the pressure to pay the brand fees, Vedanta Ltd routed ₹ 2,500 crore
'Under pressure to pay brand fees, VEDL routed a ₹ 2,500 crore loan through a company doing ₹ 416 crore in sham operations, hoping regulators didn't look,' said the short seller in its latest report. Viceroy Research released its latest report titled 'Vedanta – Vedanta Semiconductor: ₹ 2,500 Crore Dhoke Ka Sammraajy' on Friday, 18 July 2025.
The report further alleged that VSPL is a 'sham commodities trading operation' which has been designed to avoid the classification of coming under a non-banking financial company (NBFC).
'We believe that Vedanta Limited (VEDL) subsidiary, Vedanta Semiconductors Private Limited (VSPL), is a sham commodities trading operation designed to improperly avoid classification as a Non-Banking Financial Company (NBFC),' they said in the report.
They also claimed that the alleged loan routing was devised to facilitate Vedanta's remittance of brand fees to its parent company when it faced a severe liquidity crunch.
'This scheme was devised to facilitate VEDL's remittance of brand fees to Vedanta Resources' (VRL) in April 2025, when it faced a severe liquidity crisis,' said Viceroy.
According to the report released on Friday, the short seller claims that Vedanta Semiconductors Private Limited needs an 'operational illusion' of 24 months or 2 years to fulfil its dues to its offshore lenders and hide the 'near-catastrophe' of April 2024.
They also said that even though the credit rating analysts are 'snoozing through the alarm bells,' the Indian regulators are 'famously light sleepers.'
'VSPL's operational illusion needs 24 months of regulatory silence to fulfil its purpose, repaying its offshore lenders and hiding the near-catastrophe of April 2024. While credit analysts are snoozing through the alarm bells, India's regulators are famously light sleepers,' claimed the short seller in its latest report.
In April 2024, the company faced a severe liquidity crisis. The loans granted were allegedly used to fund the May dividend issue and not to pay the brand fees.
'The loan was intended to be used to send up the brand fees but, by the time JPM had sold the debt in the market, they had already been paid so the loan was used to fund the May dividend,' claimed the sort seller in the research report. 'In response, VEDL reactivated VSPL, not as a semiconductor venture, but as a zero-margin trading entity whose operations appear to consist entirely of paper-based commodity trading.'
Vedanta share price closed 0.33% higher at ₹ 445.70 after Friday's stock market session, compared to ₹ 444.25 at the previous market close, according to BSE data.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
19 minutes ago
- Economic Times
Michael Saylor's Strategy owns 3% of Bitcoin in circulation after latest purchase
Michael Saylor's Strategy now owns more than 3% of all the Bitcoin ever minted following the crypto treasury company's latest purchase of the original cryptocurrency. ADVERTISEMENT The former MicroStrategy Inc. acquired 6,220 Bitcoin for $739.8 million during the seven days ended July 20, according to a filing Monday with the US Securities and Exchange Commission. This raised the Tysons Corner, Virginia-based firm's holdings to 607,770 Bitcoin — which is about 3.05% of the roughly 19.9 million token issued. The stack is worth about $72 billion. Strategy has been using a combination of common and preferred shares, as well as debt, to fund Bitcoin purchases since it began accumulating the cryptocurrency in late 2020 as a hedge against inflation. Dozens of companies have begun to emulate the practice. Strategy is the world's leading corporate owner of Bitcoin. BlackRock's iShares Bitcoin Trust ETF (IBIT) holds about $86 billion in assets. While some other tokens' unlimited supply has concerned investors, Bitcoin's store of value proposition has been buoyed by the 21 million limit on the number of tokens to be mined. Instructions in the network's original code have further helped to promote the scarcity value of the token — like quadrennial halving events that automatically slash the amount of token rewards miners earn. The last Bitcoin is expected to be issued in the year 2140. Strategy said separately Monday that it planned to offer 5 million of variable-rate Series A perpetual Stretch preferred stock to help finance additional Bitcoin purchases. It is the fourth series of preferred shares by the company. The common shares of Strategy has surged more than 3,500% since Saylor - a founder and executive chairman of the company - began buying Bitcoin. The cryptocurrency has risen about 1,100% during the same period, while S&P 500 has increased around 120%. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
India.com
19 minutes ago
- India.com
BSF Foils Narco-Drone Infiltration: Two Pakistani Drones Carrying Heroin Intercepted In Punjabs Amritsar
In another successful counter-drone operation, the Border Security Force (BSF) intercepted and recovered two narcotics-laden drones in Punjab's Amritsar on Tuesday afternoon. In a press release, the BSF stated that technical countermeasures deployed on the border intercepted and neutralised two drones on the Amritsar border, which were subsequently recovered by BSF troops. The recovery of 02 DJI Mavic 3 Classic drones along with 02 packets of heroin (Gross weight- 1.130 Kgs) took place from an area adjacent to the village, Dhanoe Kalan, as per the release. The release further stated, "These successful recoveries of drones with narcotics highlight the perfect combination of robust technical countermeasures and alert BSF troops deployed on borders, who are committed to decimate nefarious designs of cross-border Pakistani drug syndicate." On Sunday, the BSF recovered the upper body of a pistol, four magazines and a drone in two significant operations with a large heroin packet in Punjab's Tarn Taran. According to the release, "On Sunday early morning, the BSF troops carried out a search operation, which culminated in the recovery of one packet containing the upper body of a pistol and four magazines wrapped in yellow adhesive tape with an iron ring and a torch attached to it. This recovery took place from a waterlogged paddy field adjacent to the village of Wan." In another incident in the morning hours, acting on specific information, a joint search operation was conducted by the BSF and Punjab Police, which led to the recovery of one DJI Matrice 300 RTK drone carrying 01 large packet of heroin (Gross Weight- 3.700 Kgs) from a farming field adjacent to village- Shekhpura of district Tarn Taran. The narcotics packet, wrapped in yellow colour adhesive tape, was found attached to the drone with the help of a metal ring. Reliable input and keen observation, followed by swift action of BSF troops, once again thwarted these nefarious attempts of Pakistan-based smugglers trying to pump drugs and arms in Punjab from across the border.
New Indian Express
19 minutes ago
- New Indian Express
Ever ordered a shot of ‘Yakshi'? Malayalis abroad might get a chance
KOCHI: Riding on the success of the 'Malayali' beer, the Warsaw-based brand is expanding into the production of vodka. Come September, its new offering -- Yakshi -- will debut, joining the brands crafted by Malayali-owned companies, such as Taika, Rooster Vodka, Mandakini, and Maharani Pomelo Vodka. In another happy news for beer connoisseurs, Malayali beer will be touching down at CIAL's Cochin Duty Free. Speaking to TNIE about the new launch and the story behind it, the founders of the company, Hexagon Spirits International SP Zoo, Chandu Nallur and Sargheve Sukumaran, say, 'Much like the story behind Malayali beer -- crafted in the wake of the Russia-Ukraine war -- Yakshi too has an interesting back story. This single malt vodka was born from the residual by-products of the distillation process used in 'Malayali Habibi', our 0% alchohol beer. Yakshi is our latest innovation, conceptualised following a discussion with Lulu Group Chairman M A Yusuff Ali.' 'Yusuf Ali told us that if we are able to make a perfect zero per cent alchohol beer, he would make it available in all Lulu malls. But it has to be a perfect zero alchohol beer. Nobody has made such a beer since the cost of production is very high, and it involves multiple distillation processes to ensure that every drop of alcohol is eliminated. Now, even though we got the zero beer, we were left behind with the residual alcohol.' The founders then decided to make use of the byproduct. 'As you know, we Malayalis are known problem solvers and people who never let anything go to waste. So, Yakshi was born,' they added.
