FILE PHOTO: The former CJI also noted the lack of evidence of wrongdoing by Vedanta
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DANISH SIDDIQUI
Vedanta Limited could take legal recourse to counter allegations levelled by Viceroy Research, armed with a legal opinion from former Chief Justice of India Justice DY Chandrachud. Vedanta had sought the former CJI’s opinion, sources said.
The opinion says Viceroy’s report is non-credible, citing their history of market manipulation, dubious researcher credentials, and suspicious timing near Vedanta’s proposed demerger.
Justice Chandrachud noted the absence of evidence for wrongdoing. businessline has reviewed the copy of the opinion.
“The Querist (Vedanta), being a listed company, operates within the regulated and monitored framework outlined above. It is not a fly-by-night operator escaping the scrutiny of India’s securities’ regulatory system. I understand that no regulator or credit rating agency has raised any adverse findings against the Querist on the themes alleged in the Report. Notably, many of the assertions made in the Report are based on information already available in the public domain through investor calls, annual filings, and regulatory submissions,” Chandrachud noted.
Sources said Vedanta’s legal options include pursuing defamation lawsuits against Viceroy under the Bharatiya Nyaya Sanhita, 2023, filing complaints with SEBI for potential market manipulation, issuing public rebuttals to restore investor confidence, reinforcing governance transparency, and proceeding with its demerger plans while addressing stakeholder concerns.
“The Querist would be well placed to approach the Indian Courts for adequate protection and remedies with regard to a defamation,” Chandrachud opined.
The fight with Viceroy
Vedanta Limited, a subsidiary of Vedanta Resources Limited, is fighting a contentious report by Viceroy Research LLC, a Delaware-based firm known for its aggressive short-selling tactics.
Published on July 9, 2025, the report accused Vedanta of financial misgovernance, alleging its corporate structure funnels subsidiary funds to service parent-level debt. Branded with terms like “Ponzi scheme” and “parasite,” the report has spread rapidly online, prompting Vedanta to denounce it as misleading and based on rehashed public disclosures.
Vedanta had approached Justice Chandrachud, the former Chief Justice of India, to evaluate the report’s legal standing.
He questioned Viceroy’s credibility, pointing to the dubious qualifications of its researchers that include Fraser Perring, Gabriel Bernarde, and Aidan Lau. Perring, previously a UK social worker, was barred from practice, while Bernarde and Lau lack verifiable financial expertise.
Chandrachud highlighted Viceroy’s legal troubles, including a $3.7 million fine in South Africa for a false report on Capitec Bank and a settled 2023 U.S. defamation lawsuit by Medical Properties Trust over a “short-and-distort” scheme.
The Delhi High Court had also criticised Viceroy’s tactics in a prior Ebixcash case, where it targeted a company’s stock listing with unverified claims.
Chandrachud described Viceroy’s strategy as taking short positions, publishing inflammatory reports without verification, and profiting from stock price drops. The report’s release, timed with Vedanta’s refinancing and a pending corporate demerger before the NCLT, on August 22, 2025, raised suspicions of market manipulation. He underscored India’s robust regulatory framework under SEBI and the RBI, noting Vedanta’s compliance and transparent disclosures, which show no evidence of regulatory breaches.
On defamation, Chandrachud found Viceroy’s language actionable under Indian law.
Citing the Ebixcash precedent, he recommended Vedanta pursue legal remedies in Indian courts.
Vedanta refused to comment on the matter.
Published on July 18, 2025
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