Image Source : ET Infra
Vedanta Ltd has issued a firm denial in response to recent media reports suggesting that Singapore authorities are reviewing allegations made by US-based short seller Viceroy Research. The company clarified on September 19, 2025, that it has not been contacted by Singapore police and that no formal investigation is underway. Vedanta has categorically dismissed the claims as baseless and part of a targeted campaign to discredit its operations and financial standing.
The controversy stems from a series of reports released by Viceroy Research earlier this year, which accused Vedanta Resources Ltd—the London-based parent of Vedanta Ltd—of financial mismanagement, undisclosed liabilities, and governance failures. While Singapore police documents reportedly confirm a preliminary review of these claims, Vedanta maintains that the allegations are unfounded and lack legal merit.
Key Highlights From The Dispute
- Vedanta Ltd states it has not received any communication from Singapore police
- The company denies the existence of any investigation and calls the allegations baseless
- Singapore authorities are reportedly reviewing documents submitted by Viceroy Research
- Viceroy’s reports allege financial unsustainability and hidden related-party transactions
- Vedanta asserts full compliance with disclosure norms and regulatory frameworks
Background Of The Allegations
Viceroy Research, known for its activist short-selling strategies, released a detailed report in July 2025 accusing Vedanta Resources Ltd of operating a financially unsustainable structure. The report claimed that the parent company was draining cash from its listed subsidiary Vedanta Ltd to service its own debt, likening the arrangement to a Ponzi scheme.
Further allegations included inflated asset valuations, off-balance sheet liabilities, and undisclosed related-party transactions. Viceroy also questioned the role of certain trusts and entities allegedly linked to the promoter group, suggesting they were used to obscure shareholding patterns and divert dividends.
Legal And Regulatory Context
The Supreme Court of India recently adjourned a plea seeking a formal probe into Viceroy’s claims, following the recusal of Justice K Vinod Chandran from the case. The petitioner had cited corroborative evidence from public filings and regulatory disclosures to support the allegations. However, no formal investigation has been initiated by Indian authorities to date.
In Singapore, police documents reportedly confirm that the claims are under preliminary review, but no charges or formal inquiries have been announced. Vedanta has reiterated that it remains committed to transparency and regulatory compliance across jurisdictions.
Vedanta’s Response And Corporate Position
Vedanta Ltd has strongly refuted the allegations, calling them selective misinformation aimed at damaging its reputation. The company emphasized that its financial disclosures are audited by reputed firms and comply with SEBI and stock exchange norms. It also stated that its governance practices are aligned with global standards and subject to regular scrutiny.
The company’s leadership, including Chairman Anil Agarwal, has publicly defended its financial health and strategic direction. During its annual general meeting in July, Agarwal reaffirmed Vedanta’s commitment to transparency and dismissed the Viceroy report as false propaganda.
Market Reaction And Investor Sentiment
Vedanta’s stock (VEDL.NS) experienced mild volatility following the news, reflecting investor caution amid regulatory uncertainty. However, analysts have noted that the company’s fundamentals remain intact and that the allegations, while serious, have yet to result in any formal action.
JPMorgan and other institutional investors have continued to back Vedanta, citing its diversified asset base and long-term growth prospects. The company’s recent efforts to restructure debt and streamline operations have also been viewed positively by market participants.
Looking Ahead
As the situation unfolds, Vedanta is expected to maintain its defensive posture while cooperating with any regulatory queries that may arise. The company has not ruled out legal action against Viceroy Research for defamation and market manipulation.
The broader implications of the case could influence how Indian conglomerates manage offshore structures and related-party disclosures. For now, Vedanta remains focused on operational continuity and stakeholder engagement.
Sources: The New Indian Express, Viceroy Research, Outlook Business.
Advertisement
Advertisement
