logo
Vedanta rejects Viceroy Research's ₹2,500 crore loan routing claim, says ‘executed in full compliance…'

Vedanta rejects Viceroy Research's ₹2,500 crore loan routing claim, says ‘executed in full compliance…'

Mint5 days ago
Mining giant Vedanta Ltd rejected Viceroy Research's allegations about the company's subsidiary Vedanta Semiconductors Pvt. Ltd (VSPL) routing ₹ 2,500 crore loans in a 'sham operation', stating that the loan transactions were executed in full compliance with the applicable laws, reported the news agency PTI on Sunday.
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.
Former Chief Justice of India (CJI) D Y Chandrachud said that Viceroy Research's report on Vedanta 'lacks credibility' and that the company would be well-positioned to seek legal help in the case.
This comes after Vedanta asked for an independent legal opinion on the matter. Chandrachud also highlighted that the US-based firm has a track record of taking short positions in listed companies then publishing 'misleading' reports to unlawfully profit from the stock market impact.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

NIA court declares Hizb chief Salahuddin a proclaimed offender under UAPA
NIA court declares Hizb chief Salahuddin a proclaimed offender under UAPA

Business Standard

time16 minutes ago

  • Business Standard

NIA court declares Hizb chief Salahuddin a proclaimed offender under UAPA

An NIA court here on Friday declared Pakistan-based Hizbul Mujahideen chief Mohammad Yousuf Shah alias Syed Salahuddin a proclaimed offender under the UAP Act. The special designated court under NIA Act, Srinagar, issued a proclamation requiring the appearance of Shah, a resident of Soibugh, Badgam, in connection with serious charges under the Unlawful Activities (Prevention) Act and the Ranbir Penal Code. According to court records, a challan was filed alleging that the accused has committed offences punishable under Sections 13 and 18 of the UA(P) Act and Section 505 of the RPC in Zakura police station. Despite a warrant being issued for his arrest, law enforcement authorities have reported that Salahuddin could not be found and is believed to have absconded or is deliberately concealing his whereabouts to evade arrest. In light of these circumstances, the court declared Salahuddin as absconding and issued a proclamation requiring his appearance before the court on or before August 30, to answer the charges framed against him. Failure to appear may lead to further legal action, including proceedings under Section 82/83 of the Code of Criminal Procedure pertaining to the attachment of property of an absconder. Srinagar Police has appealed to the public for any information on the whereabouts of Salahuddin and urged cooperation in the interest of justice and public safety. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

The Big ‘Mc' Feud: Here's why a Gujarat snack maker is suing McDonald's
The Big ‘Mc' Feud: Here's why a Gujarat snack maker is suing McDonald's

Mint

time16 minutes ago

  • Mint

The Big ‘Mc' Feud: Here's why a Gujarat snack maker is suing McDonald's

McPatel Foods Private Limited has filed a civil suit against McDonald's Corporation before an Ahmedabad rural court. The Gujarat-based snack maker alleged that it has been receiving 'groundless threats' from the American fast-food chain due to its use of the mark 'McPatel.' The Indian snack maker filed the suit under Section 142 of the Trade Marks Act, 1999, aiming for an injunction to prevent McDonald's from initiating or threatening legal action over its use of the 'Mc' prefix in its corporate and product branding. The case is listed for hearing on July 28, 2025, Bar and Bench reported. The conflict began when McPatel Foods applied to register the mark 'McPatel' under Class 30 (covering bakery goods, snacks, noodles, confectionery, sauces and frozen foods) in March 2024. However, on August 27, 2024, McDonald's filed an objection before the Indian Trade Marks Registry against this application. In its notice of opposition, McDonald's alleged the following: Deceptive similarity: McDonald's claims that the 'McPatel' mark is deceptively similar to its 'Mc' and 'Mac' family of trademarks, including McDonald's, McFries, McChicken and others. Acquired distinctiveness: The 'Mc' prefix, according to McDonald's has gained distinctiveness globally since the 1970s, and since 1996 in India due to its widespread use. Global enforcement: McDonald's argues that its trademarks are registered in more than 100 countries, solely with an aim to protect against third-party use of 'Mc'-formative marks. Dominant element: The fast-food chain also argues that 'Patel' and 'Foods' are quite common, making 'Mc' the dominant and source-identifying element in 'McPatel'. Bad intention: McDonald's also alleged that McPatel adopted the mark in bad faith to benefit from McDonald's goodwill, leading to confusion and deception and of the brand's reputation. In its counter statement filed on October 29, 2024, McPatel Foods denied all allegations, asserting the following: Legitimate adoption: The Indian snack maker claimed that the mark was adopted from its registered corporate name and trading style, with no intent to misrepresent or unfairly benefit from McDonald's reputation. Distinct identity: The company said that it is a legally incorporated Indian MSME specialising in processed food, particularly in frozen French fries and their mark is also visually, phonetically and conceptually different from McDonald's trademarks. No prior conflict: The Trademark Registrar is said to have found no conflicting marks at the examination stage, leading to the application's acceptance and advertisement. Lack of evidence: McPatel also pointed to the absence of actual confusion or consumer deception. Jealousy: McPatel contends that the opposition is driven by 'business jealousy' and is filed in bad faith to harass a domestic company. McPatel stood by its rationale that 'Mc' is a common prefix and McDonald's cannot claim monopoly over it across all combinations or industries. As of now, the trademark registry has not made a final decision on the dispute. The ongoing litigation is expected to cause further delays, as reported by Bar and Bench.

Khammam cyber crime police arrest 3 from A.P. in ‘digital arrest' fraud
Khammam cyber crime police arrest 3 from A.P. in ‘digital arrest' fraud

The Hindu

time16 minutes ago

  • The Hindu

Khammam cyber crime police arrest 3 from A.P. in ‘digital arrest' fraud

The Khammam Cyber Crime Police have arrested three people from Andhra Pradesh for duping a Khammam-based retired teacher of ₹59 lakh in a 'digital arrest' fraud case. The accused were identified as Yerri Swamy, 35, E. Lakshma Naik, 35, and K. Narayana Reddy,49, of Anantapur district in Andhra Pradesh. According to the police, the accused allegedly coerced the victim to transfer ₹59 lakh in different spells in April 2025 under the guise of 'digital arrest' by pretending to be police from Bengaluru. The trio allegedly intimidated the victim by making false charges that his Aadhar card was used for job frauds and anti-social activities. Khammam Police Commissioner Sunil Dutt appreciated the Cyber Crime police team that nabbed the accused from Andhra Pradesh in a well-coordinated operation.

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