Viceroy fires fresh salvo at Vedanta: What did it say?
What's the story
US-based short-seller Viceroy Research has accused Vedanta Group of running a "sham commodities trading operation" through its semiconductor unit. The firm alleged that the operation was set up to avoid classification as a Non-Banking Financial Company (NBFC). The allegations come after Vedanta faced a severe liquidity crisis in April 2024. However, Vedanta has strongly rejected these claims and asserted its compliance with all applicable laws.
Fund transfer claims
Allegations revolve around Vedanta Semiconductors Pvt Ltd
Viceroy's allegations center around Vedanta Semiconductors Pvt Ltd, a subsidiary of Vedanta Ltd. The firm claimed that this unit was part of a scheme to allow Vedanta Ltd to remit brand fees to its parent company, Vedanta Resources. This alleged scheme was devised in April 2024 when the Mumbai-listed firm faced a severe liquidity crisis.
Rebuttal
Vedanta rejects Viceroy's claims
In response to the allegations, a Vedanta spokesperson said the group "strongly rejects the baseless allegations made in the report regarding Vedanta Semiconductors Pvt Ltd (VSPL)." The spokesperson added that all business activities of VSPL have been transparently disclosed and are in line with statutory norms. This comes as part of Vedanta's continued defense against Viceroy Research's persistent attacks on its operations.