Viceroy says Vedanta promoters hold undisclosed stake via trust

US short-seller Viceroy Research on Tuesday levelled new allegations at Vedanta Group, this time accusing Vedanta Ltd's promoters of holding an undisclosed stake through a welfare trust, charges the company rejected as baseless.

- Nehal Chaliawala & Varun Sood

The entity under scrutiny is PTC Cables Pvt. Ltd (PTCC), which holds a 1.91% stake in Vedanta Ltd, a company with a market capitalization of ₹1.75 trillion, according to BSE data. PTCC is owned by Bhadram Janhit Shalika Trust (BJST), which Viceroy alleges is controlled by the Agarwal family, founders of the Vedanta Group.

According to Viceroy, PTCC received ₹1,500 crore in dividend income from Vedanta over the past five years, and the capital was "upcycled" to promoter-linked entities.

"PTCC exists for one purpose: to quietly recycle Vedanta's cash into promoter-controlled vehicles while maintaining the illusion of independence," the Viceroy report said.

Vedanta denied the allegations.

"These assertions are baseless," a spokesperson for the company said, adding that the company was compliant with the disclosure norms as stipulated by the Securities and Exchange Board of India and the Companies Act, 2013.

"Neither BJST nor PTCC are part of the promoter group as defined under applicable regulations, and their shareholding has been transparently disclosed in public filings," the spokesperson added.

Viceroy's claims are based on publicly available records.