Vedanta Slams Short-Seller Viceroy Research Over 'Baseless' Fraud Claims

The Vedanta Group on Wednesday hit back at US-based short-seller Viceroy Research, calling its report a "combination of selective misinformation and baseless allegations" aimed at discrediting the company and triggering a market reaction.

Earlier in the day, Viceroy released a scathing report on Vedanta Resources, the parent of Vedanta Ltd., alleging the group’s financial structure was unsustainable and likening it to a Ponzi scheme. The report said the group’s operations are propped up entirely by cash extracted from its “dying host,” Vedanta Ltd., and warned that the company poses risks to creditors.

In a strongly worded media statement, Vedanta said the report was “issued without making any attempt to contact us,” accusing Viceroy of publishing “false propaganda” using publicly available information in a sensationalised manner. It also questioned the timing of the report, suggesting it could be aimed at undermining upcoming corporate initiatives.

“Our stakeholders are discerning enough to understand such tactics,” Vedanta said, pointing out that Viceroy itself disclaimed any responsibility for the contents of the report, stating it was for educational purposes and opinion-based.

Following the release, Vedanta Ltd.’s shares fell as much as 8% intraday to ₹420.65 on the National Stock Exchange, before closing 3.4% lower at ₹440.75.

Viceroy alleged the group had inflated asset values, undisclosed off-balance sheet items worth billions, and systematic governance failures, including questionable auditor choices. It added that any one of the risks outlined could be enough to “topple Vedanta’s already fragile, Ponzi-like structure.”

Vedanta said it remained focused on business growth and urged stakeholders to “avoid speculation and unsubstantiated allegations.”