Vedanta Faces Allegations Over Brand Fee Agreement

Hindustan Zinc Ltd CEO Arun Misra has denied allegations by US short-seller Viceroy. The allegations claim that Vedanta violated its brand fee agreement with the Indian government. Misra stressed that the company's board adhered to proper procedures, consulting with the government before any board decisions were made.

The allegations stem from a Viceroy report accusing Vedanta of breaching its agreement with the government regarding the collection of a brand fee from Hindustan Zinc Ltd. Misra assured that proposals are vetted legally and shared with the Indian government's nominee director ahead of board meetings.

The government's shareholdings in HZL amounted to 27.92%, while Vedanta holds a 61.84% stake. Despite Viceroy's series of reports against Vedanta and its subsidiaries, Misra remains confident that the agreement and its governance are robust.

(With inputs from agencies.)