Vedanta Rejects Viceroy Research’s ₹2,500 Crore Loan Routing Allegations, Cites Full Legal Compliance
Mining and natural resources giant Vedanta Ltd has dismissed allegations by U.S.-based short-seller Viceroy Research, which accused its subsidiary, Vedanta Semiconductors Pvt. Ltd (VSPL), of routing ₹2,500 crore in loans through what it called a “sham operation.” In a statement released on Sunday, 20 July 2025, and reported by news agency PTI, Vedanta firmly rejected the claims, asserting that all transactions were conducted in full compliance with the law.
“Vedanta strongly rejects the baseless allegations made in the report regarding Vedanta Semiconductors Pvt Ltd (VSPL),” a company spokesperson said. The company emphasized that the financial dealings in question were executed with complete transparency and in adherence to statutory requirements.
“All business activities of VSPL have been transparently disclosed and are in line with statutory norms,” the spokesperson added.
The report by Viceroy Research had raised concerns about potential irregularities in the movement of ₹2,500 crore in loans between Vedanta Ltd and its semiconductor subsidiary. It alleged that the arrangement lacked commercial substance and suggested improper financial engineering.
Vedanta has countered those claims, maintaining that both companies—Vedanta Ltd and VSPL—have fully complied with corporate governance standards. The spokesperson underlined that the companies have consistently reported accurate and detailed information about the transaction terms, interest rates, and collateral associated with the loans.
“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,” the spokesperson reiterated.
The company’s strong response comes amid growing scrutiny of corporate loan practices, particularly within conglomerates managing multiple subsidiaries. Vedanta’s rejection of the allegations aims to reassure investors and regulatory bodies about the integrity of its financial practices.
