Vedanta Share Price Reel Under Viceroy’s 'Ponzi Scheme' Allegation; Check Company’s Statement Here

The shares of Vedanta Limited continued to trade in the red on July 10, slipping nearly 1% to Rs 436.35 apiece by 12:47 pm. This comes a day after the stock saw a sharp intraday fall of over 8%, triggered by explosive allegations made by US-based short-seller Viceroy Research.

On July 9, Viceroy announced it had taken a short position on the debt of Vedanta Resources Ltd (VRL), the parent company of Vedanta Limited, claiming the entity “resembles a Ponzi scheme.”

The report accused the Anil Agarwal-owned mining conglomerate of systematically draining Vedanta Limited to meet its own debt obligations.

“Parasite Holding Company,” Says Viceroy
In its report titled Limited Resources, Viceroy described Vedanta Resources as a “parasite holding company with no significant operations of its own, propped up entirely by cash extracted from its dying host, Vedanta Limited.”

The report further added: “VRL’s actions to meet its short-term obligations directly impair its creditors’ long-term ability to recover their principal, a situation that resembles a Ponzi scheme where Vedanta stakeholders, which include VRL creditors, are the 'suckers'.

Following the report's publication, Vedanta shares crashed over 8% intraday on July 9, before recovering to close 3% lower.

Vedanta Issues Strong Denial
Vedanta Limited quickly responded with a public statement, refuting the allegations and questioning the report’s credibility.
“The Viceroy research group report on Vedanta – Limited Resources, published on July 9, 2025, is a malicious combination of selective misinformation and baseless allegations to discredit the Group,” the company said.

“It has been issued without making any attempt to contact us with the sole objective [of] creating false propaganda. It only contains compilation of various information - which is already in the public domain, but the authors have tried to sensationalise the context to profiteer from market reaction,” the clarification added.

Vedanta also noted the suspicious timing of the report, just ahead of its upcoming corporate initiatives. “Our stakeholders are discerning enough to understand such tactics,” it said, adding that the report carries multiple disclaimers and is “for educational purposes only.”

Read More - Stock Market Today: Will Nifty50, BSE Sensex Break Out or Stay Flat?

AGM, Leadership Exit Add to Uncertainty
The pressure on Vedanta comes ahead of its crucial Annual General Meeting (AGM) scheduled for today, where investors will closely watch for Chairman Anil Agarwal’s remarks—particularly any response to the short-seller controversy.

Meanwhile, concerns have deepened with recent leadership changes. Bloomberg reported that Chris Griffith, CEO of the base metals business at Vedanta Resources, has stepped down. Griffith was overseeing key international assets, including zinc mines in South Africa and Namibia, and also served as President of the group’s international business.

Hindustan Zinc Also Hit by Allegations
The storm hasn’t spared Vedanta’s subsidiary, Hindustan Zinc, whose shares also traded lower. Viceroy alleged that Hindustan Zinc's resources were being “looted” through related-party transactions and unjustified brand fees paid to promoter-family-owned companies. “Vedanta’s crown jewel may be its biggest liability,” the report added.
 

As the dust settles, markets and stakeholders await clarity from Vedanta’s top leadership, particularly Anil Agarwal, on the company's future strategy and response to these damaging allegations.
Disclaimer

The views expressed in this article are purely informational and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds