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


Mint
43 minutes ago
- Mint
Stock to buy: Anand Rathi predicts Apollo Micro Systems' share price to rise 25% in 3 months. Here's why
Stock to buy: Indian brokerage firm Anand Rathi Investment Services disclosed its bullish stance on Apollo Micro Systems shares, predicting a 25% upside in the upcoming three-month period. In the stock report, Anand Rathi analysts highlighted that the shares of the Aerospace and Defence equipment maker had undergone a 'significant correction' after peaking near the ₹ 221 levels. They also stated that the stock is now moving 'within its Ichimoku cloud,' aligning with the previous breakout zone. 'The stock is moving within its Ichimoku cloud, aligning with the previous breakout zone, while the 100-day Exponential Moving Average (DEMA) also corresponds closely to this area. Fibonacci retracement levels between 38.2% and 50% further indicate potential support, suggesting a base formation near the 165-175 range,' said the analysts at Anand Rathi. On the technical front, the shares' Relative Strength Index (RSI) is hovering over the 40 support mark, which likely indicates a potential stabilisation. 'Additionally, the daily Relative Strength Index (RSI) is around the crucial 40 support mark, signalling possible stabilisation,' they said. Apollo Micro Systems Ltd (APOLLO): Buy in the range of ₹ 165-175; Target Price at ₹ 210; Stop Loss at ₹ 150 (on a daily closing basis). 'Given this technical setup, investors might consider buying or accumulating shares within the 165-175 zone. The upside target is projected at 210, while a stop-loss below 150 on a daily closing basis is recommended to manage risk. This outlook highlights key support and resistance levels that traders should monitor closely before making investment decisions,' recommended Jigar Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, in the stock report. Apollo Micro Systems shares closed 0.29% higher at ₹ 172.30 after Friday's stock market session, compared to ₹ 171.80 at the previous market close. The brokerage firm released its bullish stance on the company after market operating hours last week, on 25 July 2025. Shares of the Aerospace and Defence equipment maker have given stock market investors more than 1,280% returns on their investment in the last five years and over 39% gains in the last one-year period. On a year-to-date (YTD) basis, the stock has jumped 40.87% in 2025 but are currently trading 4.7% lower in the last five market sessions on the Indian stock market. According to data collected from the BSE website, Apollo Micro Systems shares hit their 52-week high at ₹ 221.40 on 24 June 2025, while the 52-week low was at ₹ 88.10 on 23 October 2024. The shares are currently trading under their year-high levels. The company's market capitalisation (M-Cap) stood at ₹ 5,280.82 crore as of the stock market close on Friday, 27 July 2025. Read all stories by Anubhav Mukherjee Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.


India.com
an hour ago
- India.com
No Entry For GM Crops, Says New Delhi; India-US Trade Talks Hit A Sacred Wall
New Delhi: Genetically modified (GM) crops will not be crossing India's borders anytime soon, no matter how urgently the United States knocks. As trade negotiations between New Delhi and Washington enter a crucial phase, insiders say one red line is not up for discussion. 'There are things that are not about negotiation. Some things are a matter of principle,' said a senior official close to the development. That principle, sources say, is GM corn and soy. While American negotiators have made agricultural access a central demand, pressing India for a wider entry gate for U.S. farm goods, New Delhi is not blinking, especially on GM imports. Over the years, the issue has mutated from a mere trade disagreement into a symbolic fight over sovereignty, food safety and grassroots politics. The United States Trade Representative (USTR) has repeatedly flagged India's restrictions on GM products, calling them 'non-tariff barriers'. But Indian authorities remain unmoved, largely because of the hardline stance taken by domestic groups closely aligned with the ruling establishment. Last month, the message from Sangh affiliates was if America insists on forcing GM crops into the Indian market, there may be no trade deal at all. Carried in Business Standard, that warning echoed the sentiments of influential groups such as the Bharatiya Kisan Sangh (BKS) and the Swadeshi Jagran Manch (SJM), which have long opposed agricultural concessions to Washington, particularly in sectors like dairy and GM crops. Their argument? Food security. The BKS has often warned that allowing U.S. crops into India, especially without clear labelling or transparency, could sabotage domestic farming ecosystems and compromise health safety standards. On the other hand, the SJM sees this as a direct attack on economic self-reliance. Meanwhile, the clock is ticking. U.S. officials have privately hinted at the urgency of the moment, pointing to a deadline set by President Donald Trump, who is seeking a revival of his trade agenda. Trump has marked August 1 as a red-letter day. If no interim deal is inked by then, India could be hit with reciprocal tariffs, potentially as high as 26 percent. Indian trade negotiators are not indifferent to that pressure. But according to officials involved in the process, the sixth round of talks will only happen in the second half of August after Trump's deadline expires. Any hope for a short-term resolution seems, at best, unrealistic. As one official put it, 'We are not looking at compromise in areas that touch the lives of millions.' In other words, GM corn is off the table. And perhaps, so is the deal, at least for now.


Time of India
2 hours ago
- Time of India
On the run for 25 years: When law fails to catch up with 800 POs
Mohali: After constituting a special team to crack down on long-standing fugitives, the Mohali Police discovered that it has over 800 proclaimed offenders (POs), many of whom have been evading the law for up to 25 years. In the past 30 days alone, 23 POs were arrested, marking the beginning of an aggressive and focused campaign to bring long-absconding criminals to justice. These POs — accused in cases ranging from cheating, robbery, theft, accidents, assaults, extortion, and fights — either jumped bail or stopped attending court hearings and continued to live normal lives in parts of Punjab, Uttar Pradesh, Rajasthan, Haryana, Himachal Pradesh, and even abroad. Taking serious note of the backlog, Mohali senior superintendent of police (SSP) Harmandeep Singh Hans constituted a special committee comprising SP (operations), DSP, and ASIs, tasked with identifying, tracking, and apprehending these offenders. "After assuming charge, I reviewed our PO list and realised the urgency to act. We formed a dedicated team to compile data, verify case statuses, and initiate arrests," said SSP Hans. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo "In just one month, we arrested 23 POs. The drive will continue until we reach our target of 800." SP (detective) Saurav Jindal, heading the data compilation effort, stated that the team worked diligently to track down offenders and initiate the legal process. DSP Naveen Pal Singh Lehal added that several of the arrested individuals were found to have jumped bail, while others were already serving sentences in different cases — in such cases, production warrants were obtained to bring them under trial for pending charges. Some POs, however, fled the country, making their arrest more complex. "During our investigation, we found that fraud accused Preet Brar and his brother Amrit Brar, involved in a Rs 51 lakh cheating case, escaped to Canada. Similarly, Gaurav Kumar, accused in a journalist's murder, is now in Uttar Pradesh, and the wife of Armenia-based gangster Gaurav Padial has also reportedly left for Canada," the DSP added.