Vedanta Group Responds to Viceroy’s “Ponzi” Allegations, Says Report Issued Without Engagement

The Vedanta Group has issued a formal response to the explosive report released by U.S.-based short-seller Viceroy Research, which accused the company of operating a financially unsustainable structure that “resembles a Ponzi scheme.” In its rebuttal, Vedanta stated that the report was “issued without any attempt to contact the Group” and dismissed the allegations as “baseless and misleading.”

 

Background: The Viceroy Report

On July 9, Viceroy Research announced it had taken a short position on the debt stack of Vedanta Resources Ltd (VRL), the parent company of NSE-listed Vedanta Ltd. The report described VRL as a “parasite” holding company with no meaningful operations of its own, alleging that it survives by siphoning cash from Vedanta Ltd. It further claimed that the group’s structure is “financially unsustainable, operationally compromised,” and poses a “severe, under-appreciated risk to creditors.”

 

Vedanta’s Response

In a statement released shortly after the report went public, Vedanta said:

 

“The report by Viceroy Research has been issued without making any attempt to contact the Vedanta Group for clarification or comment. We strongly refute the baseless and misleading claims made in the report.”

 

The company emphasized its commitment to transparency, regulatory compliance, and long-term value creation for stakeholders. It also reiterated that its demerger plan—criticized in the report—is aimed at unlocking value and improving operational focus across its verticals.

 

Market Reaction

Following the release of the Viceroy report, Vedanta Ltd shares plunged as much as 8% intraday, before recovering slightly. The stock was trading around ₹434.25 as of mid-day on July 9. The broader Nifty Metal index also saw pressure, with Hindustan Zinc and Hindalco among the top losers.

 

What’s Next?

While Vedanta has pushed back against the allegations, the report has reignited concerns over the group’s debt levels, governance practices, and financial transparency. Analysts expect further scrutiny from regulators and investors in the coming days.

 

Sources: Financial Express, Business Standard, Moneycontrol