Vedanta dismisses Viceroy allegations

US-based Viceroy Research has alleged that Vedanta group's semiconductor unit was a "sham commodities trading operation", designed to avoid classification as an NBFC, whereas the mining conglomerate dismissed the allegations, stating them baseless

- PRESS TRUST OF INDIA

US short seller Viceroy Research, which last week published a scathing report about Vedanta Group and followed it with similar reports on group companies, in fresh allegations said Vedanta Ltd's subsidiary, Vedanta Semiconductors Pvt Ltd, was part of a scheme to allow the Mumbai-listed firm to remit brand fees to parent Vedanta Resources in April this year, when it faced a severe liquidity crisis.

In a statement, Vedanta spokesperson said the group "strongly rejects the baseless allegations made in the report regarding Vedanta Semiconductors Pvt Ltd (VSPL)".

"All business activities of VSPL have been transparently disclosed and are in line with statutory norms," it said.

Viceroy said, "VSPL is a sham commodities trading operation designed to improperly avoid classification as a Non-Banking Financial Company (NBFC)".