logo
Viceroy alleges Vedanta Semiconductor is a ₹2,500-cr sham; co says baseless

Viceroy alleges Vedanta Semiconductor is a ₹2,500-cr sham; co says baseless

Time of India5 days ago
Continuing its triad against mining Moghul Anil Agarwal's Vedanta group, US-based Viceroy Research has alleged that the group's semiconductor unit was a "sham commodities trading operation", designed to avoid classification as an NBFC, a charge the mining conglomerate dismissed as baseless.US short seller Viceroy Research, which last week published a scathing report about Vedanta Group and followed it with similar reports on group companies, in fresh allegations said Vedanta Ltd's subsidiary, Vedanta Semiconductors Pvt Ltd, was part of a scheme to allow the Mumbai-listed firm to remit brand fees to parent Vedanta Resources in April this year, when it faced a severe liquidity crisis.
In a statement, Vedanta spokesperson said the group "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," it said.
Viceroy said, "VSPL is a sham commodities trading operation designed to improperly avoid classification as a Non-Banking Financial Company (NBFC)".
"This scheme was devised to facilitate
Vedanta Ltd
's remittance of brand fees to Vedanta Resources' (VRL) in April 2025, when it faced a severe liquidity crisis," Viceroy said.
"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."
In April 2024, Vedanta Limited (VEDL) faced a severe liquidity crisis. "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."
"VSPL tapped offshore lenders for a short-term, INR-denominated, 10 per cent NCDs secured by VEDL's stake in HZL (equivalent to 1 per cent of outstanding shares). VSPL then began trading commodities (copper, silver, gold) on a zero-margin basis reminiscent of wash trading," Viceroy alleged.
VSPL, it said, remitted the loan to VEDL as a 24-month 12 per cent loan, with the spread intended to cover the sham operation's costs.
The semiconductor unit, superficially an operating entity, would face reduced scrutiny for loan repayments under FEMA, Companies Act, PMLA and AML frameworks.
"VSPL will likely have to continue these sham operations until FY27, when the loans fall due and repayment will have to be routed back through it. If, at any point, the regulators intervene at VSPL, the lender group is likely facing a total wipeout," the US short-seller alleged.
Vedanta spokesperson in the statement said, "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," it said, adding that it would encourage stakeholders to only reply on verified disclosures and audited financials.
Viceroy, on July 9, said it has taken a short position against the debt of Vedanta Resources, the UK-based parent of Indian miner Vedanta Ltd, and alleged in the report that the British firm is "systematically draining" its Indian unit.
Vedanta had dismissed the report as "a malicious combination of selective misinformation and baseless allegations", and that Research issued it without contacting the group.
Viceroy, in its latest report, said despite Vedanta's claim that it failed to engage, it is yet to receive a response to the issues flagged since July 9.
"For a company so quick to dismiss our findings, one might expect answers to be equally swift. It's been over a week since we formally requested clarification," the short seller added.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

FIR after breach in contactless licence facility leads to 2 fraud cases
FIR after breach in contactless licence facility leads to 2 fraud cases

Time of India

time28 minutes ago

  • Time of India

FIR after breach in contactless licence facility leads to 2 fraud cases

Lucknow: The transport department, which has recently implemented an online Aadhaar-based contactless Learner Licence (Faceless LL) system under which applicants can take their LL tests from the comfort of their homes, has ordered revocation or cancellation of two licences allegedly acquired fraudulently. A detailed investigation has revealed that an Artificial Intelligence (AI)-generated video was created using the applicant's Aadhaar photograph, face authentication and liveness tests (such as eye blinking, smiling) to illegally bypass the test stages for the document. The LL test violation report indicated abnormalities like "No Eye Blink Detected," confirming that the applicant himself was not present during the test. The case was reported in the Transgomti Office, Lucknow. In another case reported from Fatehpur, the learner licence had suspicious entries such as the applicant's name recorded as "froud sale" and the father's name as "payment mat kar asre". Taking strict action in both the cases, transport commissioner, Brajesh Narain Singh, has directed the immediate registration of FIRs against the respective cyber cafés, agencies, or individuals involved. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 Most Beautiful Female Athletes in the World Learn More Undo A comprehensive report is being sent to NIC and MoRTH for immediate implementation of critical security measures and technological improvements in the Sarathi software system, including OTP login, face verification, enhanced liveness tests, IP tracking, and other necessary security measures to prevent future occurrences. Instructions have also been issued for detailed investigations and comprehensive security audits of learner licences previously issued through all offices of the transport department.

Uproar in J&K over ‘killing' of Gujjar youth in Jammu shoot-out, CM joins demand for probe
Uproar in J&K over ‘killing' of Gujjar youth in Jammu shoot-out, CM joins demand for probe

The Hindu

time44 minutes ago

  • The Hindu

Uproar in J&K over ‘killing' of Gujjar youth in Jammu shoot-out, CM joins demand for probe

J&K Chief Minister Omar Abdullah on Friday (July 25, 2025) joined the growing clamour from relatives and political parties to constitute an inquiry into the killing of a 21-year-old youth during an alleged shootout in Jammu a day ago. The deceased, Mohammad Parvez, was engaged in sand mining as a profession. According to the family, Parvez and his brother-in-law, residents of Niki Tawi, left home on Thursday to buy medicine. Family members were later called to identify a body at the Government Medical College (GMC) in Jammu by the police. Parvez got married two months ago, with his family claiming he had nothing to do with drug peddling. However, several Jammu-based news portals citing police officials, claimed there was a shoot-out with drug peddlers at Surey Chak area in Jammu's Satwari area on Thursday and Parvez was killed. The police did not furnish further details about the incident. Parvez's family along with the Gujjar community refuted the claim. 'It is a fake encounter,' Talib Hussian, a Gujjar social activist, said. Guftar Ahmed, a Gujjar leader who joined deceased's family in their protest on Friday, said, 'Top officials of the J&K Police should see the act of police on ground zero. Not a single FIR was registered against him. Union Home Minister and J&K Lieutenant Governor Manoj Sinha should take strong action against officials involved in the killing of tribal youth,' Mr. Ahmed said. A spokesman of the Gujjar Bakerwal Students Alliance said the 'selective killing of Gujjar youth in Jammu through fake encounters is alarming'. 'Why was Parvez Ahmed murdered? Is this a conspiracy to silence us one by one? Under the garb of encroachment, drugs, and smuggling, our community is being targeted. We strongly condemn this,' the Alliance added. Meanwhile, the deceased's family also urged the L-G administration to initiate an impartial probe, announce compensation and a job for the kin. J&K CM Abdullah urged the Union Territory Police to hold an inquiry into the incident. 'The killing of Parvez of Niki Tawi in Jammu is highly unfortunate and deeply regrettable. Use of force by the police has to be calibrated and cannot be indiscriminate. J&K has paid a heavy price in the past because of incidents such as these,' the Chief Minister said. Mr. Abdullah said the incident should be investigated in a transparent and time bound manner. National Conference (NC) leader and Minister Javed Ahmed Rana raised the issue with the Divisional Commissioner and the Inspector General of Police, Jammu, 'over serious allegations of murder of a tribal youth'. 'An Inquiry is being initiated to uncover the truth and ensure justice in this case. The J&K government led by Mr. Abdullah will ensure that justice is delivered in the case,' Mr. Rana said. Former J&K Chief Minister and Peoples Democratic Party (PDP) president Mehbooba Mufti said the tribal youth was 'killed by the police and labelled as a drug dealer'. 'Even that may be the case, we still live in a democratic country where justice is served through rule of law as opposed to khap panchayats or kangaroo courts. Sincerely hope the Director General takes cognisance of this shocking incident by ordering a time bound impartial probe. We must not descend or condone a culture of extra judicial encounters because that's precisely what alienates people,' Ms. Mufti said. BJP leader Ravinder Raina also condemned the incident. The Islamic Welfare Organisation also expressed deep anguish and outrage over the 'tragic killing' of the Gujjar youth. 'Such a brutal and senseless act not only shatters the faith of the people in the law enforcement agencies but also raises serious questions about the continued misuse of power and growing trend of extrajudicial actions,' the organisation said. The organisation 'unequivocally condemned the act and demand a time-bound high-level judicial probe to ascertain the facts behind the killing'. 'The family of the deceased deserves justice, and the community demands transparency, fairness, and accountability from the system,' it added.

Tourism dept set to showcase state's heritage at UPITS 2025
Tourism dept set to showcase state's heritage at UPITS 2025

Time of India

timean hour ago

  • Time of India

Tourism dept set to showcase state's heritage at UPITS 2025

Lucknow: To position UP as a global tourism hub, the state's tourism department launched extensive preparations for the Uttar Pradesh International Trade Show (UPITS) 2025. The event is due to take place at India Expo Mart in Greater Noida between Sep 25-29. Officials said, "For this, the department will establish a spacious stall spanning approximately 465 square metres in hall number seven. The stall will creatively display the state's heritage sites, temple architecture, thematic tourism circuits and PPP-based tourism projects, alongside showcasing local crafts and One District One Product (ODOP) items." To enhance visitor engagement, officials noted, "The department will introduce digital tourism tools such as mobile applications, websites and QR codes, facilitating easy access to information and seamless travel planning. The integration of technology with immersive visual storytelling aims to strengthen Uttar Pradesh's tourism brand image both nationally and internationally." The exhibition stall is designed with three open sides and features a stylish front façade, illuminated signage with CNC cutting, LED walls, modern lighting, carpeting and display units. Officials also revealed that the stall will include a VVIP lounge, meeting tables, coffee machines, a pantry and a reception counter to provide a comfortable experience for guests. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo To attract visitors, the stall will feature auto-navigation screens showcasing popular tourist destinations in Uttar Pradesh. An Augmented Reality (AR) based digital touch panel will allow visitors to take selfies with images of at least six famous tourist sites. A 10-15 square metre area within the stall will be allocated to live cultural performances. Preparations are on to host traditional dances such as Mayur Nritya from the Braj region, tribal dance forms from Sonbhadra and Lakhimpur, Bundeli Folk Dance from Jhansi and Kathak from the Lucknow Gharana.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store