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.Also Read | ‘Vedanta has so many red flags, it will take people some time to digest’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. Also Read | Vedanta AGM: These are the questions short seller Viceroy wants analysts to askThe 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.Viceroy Research’s allegationsIn 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). Also Read | Five big concerns flagged by Viceroy Research in its 87-page report on Vedanta“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 remittan in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. 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Vedanta has denied the claim made by Viceroy Research regarding the ₹2,500 crore loan routing, asserting that it was carried out in complete accordance with regulations.
