Viceroy Research vs Vedanta: Allegations of Sham Operations Surface
Viceroy Research has accused Vedanta's semiconductor unit of being a fake commodities trading operation. The aim is allegedly to circumvent NBFC classification, facilitate fund remittance despite liquidity issues, and manage debt with questionable transparency, a claim Vedanta strongly denies.
- Country:
- India
US-based Viceroy Research has leveled serious allegations against Anil Agarwal's Vedanta Group, claiming its semiconductor unit is a facade for a commodity trading operation aimed at evading classification as a Non-Banking Financial Company (NBFC). Vedanta has firmly dismissed these claims as unfounded.
Viceroy alleges that Vedanta Semiconductors Pvt Ltd was part of a ploy to remit brand fees to Vedanta Resources during a dire liquidity crisis. The short seller suggests the unit was not created for semiconductor ventures but as a zero-margin trading entity designed to mask financial difficulties.
Vedanta has countered, stating that all its business activities comply with statutory norms. Viceroy, however, maintains its stance, alleging that VSPL's operations are a smokescreen to conceal the reality of Vedanta's financial challenges. Despite Vedanta's rebuttals, Viceroy's accusations add pressure on regulatory bodies to scrutinize the group's financial operations.
(With inputs from agencies.)
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