Vedanta rejects Viceroy Analysis’s ₹2,500 crore mortgage routing declare, says ‘executed in full compliance…’

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Mining big Vedanta Ltd rejected Viceroy Analysis’s allegations concerning the firm’s subsidiary Vedanta Semiconductors Pvt. Ltd (VSPL) routing 2,500 crore loans in a ‘sham operation’, stating that the mortgage transactions have been executed in full compliance with the relevant legal guidelines, reported the information company PTI on Sunday.

Additionally Learn | ‘Vedanta has so many crimson flags, it’ll take individuals a while to digest’

Vedanta “strongly rejects the baseless allegations made within the report relating to Vedanta Semiconductors Pvt Ltd (VSPL),” the report citied  a press release by firm’s spokesperson.

“All enterprise actions of VSPL have been transparently disclosed and are in step with statutory norms,” the corporate stated.

The corporate spokesperson added that Vedanta Ltd. and VSPL have ‘constantly reported’ the correct transaction phrases, charges, and collateral as per the mandated norms.

“Loans between VSPL and Vedanta Ltd have been executed in full compliance with relevant legal guidelines, company governance requirements, and each Vedanta Ltd and VSPL have constantly reported correct mortgage phrases, rates of interest, and collateral in step with statutory norms,” a Vedanta spokesperson instructed the information company.

Additionally Learn | Vedanta AGM: These are the questions quick vendor Viceroy needs analysts to ask

The corporate additionally reportedly requested the stakeholders to depend on verified disclosures and audited monetary statements.

Viceroy Analysis brazenly disclosed its quick place towards the debt of Vedanta Assets, the father or mother firm of the Indian mining big, on 9 July 2025, once they claimed that the corporate is “systematically draining” its Indian subsidiary.

Viceroy Analysis’s allegations

Within the newest improvement on the allegations saga, the US-based quick vendorViceroy Analysis, alleged that beneath the strain to pay the model charges, Vedanta Ltd routed 2,500 crore

“Beneath strain to pay model charges, VEDL routed a 2,500 crore mortgage by means of an organization doing 416 crore in sham operations, hoping regulators didn’t look,” stated the quick vendor in its newest report. Viceroy Analysis launched its newest report titled “Vedanta – Vedanta Semiconductor: 2,500 Crore Dhoke ka Sammraajy ”on Friday, 18 July 2025.

The report additional alleged that VSPL is a “sham commodities buying and selling operation” which has been designed to keep away from the classification of coming beneath a non-banking monetary firm (NBFC).

Additionally Learn | 5 huge considerations flagged by Viceroy Analysis in its 87-page report on Vedanta

“We imagine that Vedanta Restricted (VEDL) subsidiary, Vedanta Semiconductors Personal Restricted (VSPL), is a sham commodities buying and selling operation designed to improperly keep away from classification as a Non-Banking Monetary Firm (NBFC),” they stated within the report.

In addition they claimed that the alleged mortgage routing was devised to facilitate Vedanta’s remittance of brand name charges to its father or mother firm when it confronted a extreme liquidity crunch.

“This scheme was devised to facilitate VEDL’s remittance of brand name charges to Vedanta Assets’ (VRL) in April 2025, when it confronted a extreme liquidity disaster,” stated Viceroy.

Viceroy’s strike on Indian regulators

In line with the report launched on Friday, the quick vendor claims that Vedanta Semiconductors Personal Restricted wants an “operational phantasm” of 24 months or 2 years to fulfil its dues to its offshore lenders and conceal the “near-catastrophe” of April 2024.

In addition they stated that although the credit standing analysts are ‘snoozing by means of the alarm bells,’ the Indian regulators are ‘famously gentle sleepers.’

Additionally Learn | Vedanta shareholders again agency after Viceroy report

“VSPL’s operational phantasm wants 24 months of regulatory silence to fulfil its function, repaying its offshore lenders and hiding the near-catastrophe of April 2024. Whereas credit score analysts are snoozing by means of the alarm bells, India’s regulators are famously gentle sleepers,” claimed the quick vendor in its newest report.

In April 2024, the corporate confronted a extreme liquidity disaster. The loans granted have been allegedly used to fund the Might dividend problem and to not pay the model charges.

“The mortgage was meant for use to ship up the model charges however, by the point JPM had offered the debt available in the market, they’d already been paid so the mortgage was used to fund the Might dividend,” claimed the type vendor within the analysis report. “In response, VEDL reactivated VSPL, not as a semiconductor enterprise, however as a zero-margin buying and selling entity whose operations seem to consist solely of paper-based commodity buying and selling.”

Vedanta share value closed 0.33% greater at 445.70 after Friday’s inventory market session, in comparison with 444.25 on the earlier market shut, based on BSE information.

Hyperlink to the Viceroy Analysis Report

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