Latest news with #Chandrachud
Mint
21-07-2025
- Business
- Mint
Viceroy rebuts former Chief Justice D.Y. Chandrachud's legal opinion on its Vedanta report
Mumbai: US-based short-seller Viceroy Research has disputed former Chief Justice of India D.Y. Chandrachud's legal opinion on its allegations of financial misconduct and misrepresentation against Vedanta Group. Viceroy argued that Chandrachud's legal opinion did not answer questions raised by it with regards to dividend payments and alleged financial mismanagement at the mining and minerals conglomerate. Justice Chandrachud's opinion 'fails to refute, investigate, or even engage with a single substantive financial allegation in our reports,' the short-seller said in a report on Monday, 21 July, its eighth note on Vedanta in 13 days. Vedanta has consistently denied Viceroy's allegations, terming the accusations baseless. Justice Chandrachud in his legal opinion to Vedanta, which was made public on Friday, said Viceroy's first report on billionaire Anil Agarwal's group, published on 9 July, lacked credibility, and the researchers behind the report had 'dubious credentials'. He said he relied on information shared by Vedanta to arrive at this opinion since Viceroy's website had no information in this regard. The former Chief Justice also highlighted Viceroy's interest in profiteering from a possible rout in Vedanta Resources' commercial papers as a result of the short-seller's reports. He also said he suspected the timing of the report, coming just as India-listed Vedanta Ltd is headed for a demerger. In April, Viceroy Research took a short position on the bonds of Vedanta Resources Ltd, the London-based unlisted holding company of the Vedanta Group, according to Fraser Perring, founder of Viceroy Research, who didn't disclose the quantum of his firm's exposure. Viceroy argued that Chandrachud's legal opinion relied entirely on 'management representations without questioning', the short-seller said, adding that the opinion failed to dispute any of its findings, conclusions, or concerns. 'When faced with serious allegations backed by detailed financial evidence, the company responded not with transparency, but with a character assassination attempt dressed in legal language,' the short-seller said in its latest report. Viceroy also claimed Vedanta had to pay for a legal opinion to defend its parent company against claims of stealing money or misusing the subsidiary's funds. Vedanta Resources holds a majority stake in India-listed Vedanta Ltd through several intermediaries. Hindustan Zinc Ltd is a subsidiary of Vedanta Ltd. Justice Chandrachud declined to comment on the matter. He explained that his role was professional in nature and the opinion given was protected by professional privilege. 'It is inappropriate to discuss anything pertaining to it in the public realm,' he said. Vedanta Group did not immediately reply to Mint's emailed queries on Viceroy's rebuttal. In his legal opinion, Justice Chandrachud said the transactions disclosed in financial statements and regulatory filings by Vedanta showed there was transparency and compliance with regulations. Such disclosures should be presumed legitimate unless there was clear evidence to prove otherwise, he opined. To this, Viceroy argued that mere disclosure did not confirm legality of the transactions. Justice Chandrachud also said Viceroy Research's report contained serious allegations tarnishing the Vedanta Group's image and reputation. 'The report contains serious imputations such as 'ponzi scheme' and 'parasite', which have caused harm to querist's (here Vedanta Ltd) business and reputation,' he said, adding that Vedanta was well placed to seek legal remedies under such circumstances. Former trial court judge Rishabh Gandhi said dismissing Chandrachud's report as just an opinion was reductive and misleading. 'A legal opinion—an opinion rendered by a legal expert based on applicable law and the facts presented—when issued by a highly regarded authority like the former Chief Justice of India, carries considerable legal and institutional credibility,' said Gandhi, who is also the founder of law firm Rishabh Gandhi & Associates. Gandhi explained that most legal opinions are based on a detailed review of documents, statutory interpretation, and precedent, primarily to confirm legal compliance, and enforceability of corporate actions such as dividend declarations, inter-company transactions, or board resolutions. Gandhi, however, clarified that while Chandrachud's legal opinion likely affirmed the legal permissibility of Vedanta's transactions and dividend policies under Indian corporate law, it did not address the broader concerns around financial prudence, related-party dynamics, or cash flow impact. 'If Vedanta wishes to credibly address Viceroy's allegations and rebut the perception that the legal opinion is merely a public relations exercise, it would be prudentto commission an independent financial or forensic audit,' Gandhi said. Viceroy has accused Vedanta Group of alleged financial misconduct and misrepresentation, making empty promises to shore up share prices, manipulating asset values, raising off-balance sheet loans, and corporate governance lapses, Mint reported on 9 July. At Vedanta's annual general meeting on 10 July, shareholders reposed their confidence in the company. 'Different investors have different concerns as they view things differently,' said Shriram Subramanian, managing director of proxy advisory firm InGovern. 'Viceroy is a short seller and has a thesis and a short position. Other investors and stakeholders may have a different thesis.' If investors were truly concerned about Viceroy's allegations, Vedanta's stock would have seen a sharp decline, which hasn't happened, he said. On 9 July, when Viceroy published its first report on the mining conglomerate, Vedanta Ltd shares declined as much as 8% intraday to ₹ 420.65 apiece before recouping some of the losses following a clarification from the company to settle at ₹ 441.30, down 3.29% on the NSE. The shares have since recovered. On Monday, Vedanta ended 2% higher at ₹ 454.90 per share.
The Print
19-07-2025
- Business
- The Print
Former chief justice of India Chandrachud says Viceroy report on Vedanta Group lacks credibility
According to the filing, the former CJI has opined that 'Viceroy has a track record of taking short positions in listed companies and then publishing misleading reports to profit unlawfully from the resulting market impact'. Justice Chandrachud's remark came after Vedanta sought an independent legal opinion from the former chief justice in relation to the allegations made in the Viceroy Research report, the company said in a regulatory filing on Friday. New Delhi, Jul 19 (PTI) US short seller Viceroy Research's report on the Vedanta Group 'lacks credibility' and the firm would be well-placed to seek legal remedies, former chief justice of India D Y Chandrachud has said. The Viceroy Research's report on the company contains serious allegations, causing harm to the Vedanta Group's business and reputation, Justice Chandrachud said. 'The report contains serious imputations such as 'ponzi scheme' and 'parasite', which have caused harm to querist's (Vedanta's) business and reputation,' he said, adding, 'in these circumstances, the querist would be well-placed to seek legal remedies.' The US short seller in its July 9 report had called billionaire Anil Agarwal-led British firm Vedanta Resources a 'parasite' that is 'systematically draining' its Indian unit, an allegation which the group called as 'selective misinformation and baseless' aimed at discrediting the firm. Viceroy Research took a short position against the debt of Vedanta Resources, the UK-based parent of Indian miner Vedanta Ltd, alleging that the group 'is a house of cards built on a foundation of unsustainable debt, looted assets, and accounting fiction'. Vedanta had responded, saying the report was 'a malicious combination of selective misinformation and baseless allegations' and that its authors issued it without contacting the group. PTI SID HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
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Business Standard
19-07-2025
- Business
- Business Standard
Vedanta report by Viceroy 'lacks credibility', says Ex-CJI Chandrachud
Former Chief Justice of India DY Chandrachud has criticised a recent report by US-based short-seller Viceroy Research on the Vedanta Group, calling it lacking in "credibility", news agency PTI reported. According to a regulatory filing by the company, Vedanta had sought an independent legal opinion from Justice Chandrachud on the report's allegations. 'Misleading' report meant to profit: Ex-CJI Justice Chandrachud said that Viceroy has a history of taking short positions in listed companies and then releasing "misleading reports to profit unlawfully from the resulting market impact". He added that the report contains serious allegations that have harmed Vedanta's business reputation. "The report contains serious imputations such as 'ponzi scheme' and 'parasite', which have caused harm to querist's (Vedanta's) business and reputation," he said. 'In these circumstances, the querist would be well-placed to seek legal remedies.' Viceroy calls Vedanta a 'parasite' The report by Viceroy Research, released on July 9, accused billionaire Anil Agarwal-led Vedanta Resources, the UK-based parent of Indian mining giant Vedanta Ltd, of being a 'parasite' that is 'systematically draining' its Indian arm to pay off its own debts. The firm claimed the group was built on 'unsustainable debt, looted assets, and accounting fiction'. Vedanta dismisses claims as 'baseless' Vedanta swiftly responded, calling the allegations 'a malicious combination of selective misinformation and baseless allegations to discredit the group'. The company said the report was issued 'without any attempt to contact us' and was intended 'solely to create false propaganda". Details of allegations In its 87-page report, Viceroy accused Vedanta of inflating profits by capitalising expenses across its subsidiaries and pointed to a $5.6 billion gap between free cash flows and dividends paid over the past three years. It also noted a 200 per cent surge in Vedanta Ltd's net debt — around $6.7 billion — since FY22. According to Viceroy, Vedanta Resources is draining cash from Vedanta Ltd (VEDL) to meet its debt obligations. The report likened the situation to a Ponzi scheme and warned that this undermines the operating company's financial health and the recovery potential of VRL's own creditors. Vedanta denounces timing and motive Vedanta questioned the timing of the report, saying it appeared to be aimed at sabotaging upcoming corporate plans. 'Our stakeholders are discerning enough to see through such tactics,' the company said. Vedanta also argued that the report merely compiles publicly available information but distorts the context 'to sensationalise and profiteer from market reaction".
Mint
19-07-2025
- Business
- Mint
Former chief justice of India Chandrachud says Viceroy report on Vedanta Group lacks credibility
New Delhi, Jul 19 (PTI) US short seller Viceroy Research's report on the Vedanta Group "lacks credibility" and the firm would be well-placed to seek legal remedies, former chief justice of India D Y Chandrachud has said. Justice Chandrachud's remark came after Vedanta sought an independent legal opinion from the former chief justice in relation to the allegations made in the Viceroy Research report, the company said in a regulatory filing on Friday. According to the filing, the former CJI has opined that "Viceroy has a track record of taking short positions in listed companies and then publishing misleading reports to profit unlawfully from the resulting market impact". The Viceroy Research's report on the company contains serious allegations, causing harm to the Vedanta Group's business and reputation, Justice Chandrachud said. "The report contains serious imputations such as "ponzi scheme" and "parasite", which have caused harm to querist's (Vedanta's) business and reputation," he said, adding, "in these circumstances, the querist would be well-placed to seek legal remedies." The US short seller in its July 9 report had called billionaire Anil Agarwal-led British firm Vedanta Resources a "parasite" that is "systematically draining" its Indian unit, an allegation which the group called as "selective misinformation and baseless" aimed at discrediting the firm. Viceroy Research took a short position against the debt of Vedanta Resources, the UK-based parent of Indian miner Vedanta Ltd, alleging that the group "is a house of cards built on a foundation of unsustainable debt, looted assets, and accounting fiction". Vedanta had responded, saying the report was "a malicious combination of selective misinformation and baseless allegations" and that its authors issued it without contacting the group.
Time of India
19-07-2025
- Business
- Time of India
Vedanta can seek legal recourse: Ex-CJI
Vedanta MUMBAI: The US-based Viceroy Research's report on Vedanta Group contains serious allegations, causing harm to the conglomerate's business and reputation, former Chief Justice of India D Y Chandrachud has said in his legal opinion. 'The elements required to establish defamation — both civil and criminal — are satisfied in this case, given that Viceroy has published public, reputationally damaging statements directly targeting the querist (Vedanta),' the former CJI said. Viceroy in a July 9 report accused Vedanta's Londonbased parent Vedanta Resources of systematically draining the Indian-listed company. Its report, based on publicly available information, said that the entire group structure is 'financially unsustainable', operationally compromised, poses severe risks to creditors, and 'resembles a Ponzi scheme'. Vedanta had dismissed the report. 'The report contains serious imputations such as 'Ponzi scheme' and 'parasite', which have caused harm to the querist's (Vedanta) business and reputation. In these circumstances, the querist would be well placed to seek legal remedies,' Chandrachud said. The former CJI who had passed the final order on the Adani-Hindenburg case, further said, Viceroy's report lacks credibility as it has a track record of taking short positions in listed companies and then publishing misleading reports to profit unlawfully from the resulting market impact. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Lana Green Is Retiring - Her Final Jewelry Pieces Are 80% Off Design Craft Weekly Read More Undo 'The purported researchers behind the report have dubious credentials. Viceroy's disclaimer that the allegations may be made to further its short-selling interests and the suspicious timing of publication further diminish the veracity of the report.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
