SC judge Justice K Vinod Chandran recused himself from hearing a plea seeking an investigation into Vedanta’s alleged financial irregularities.
New Delhi
Supreme Court Justice K Vinod Chandran recused himself from hearing a plea that sought directions to investigate allegations by US-based short seller Viceroy Research against mining giant Vedanta. The plea, filed by advocate Shakti Bhatia, claimed that billionaire Anil Agarwal’s Vedanta group was “financially unsustainable” and posed serious risks to creditors.
Bhatia’s petition argued that parts of the Viceroy report, particularly concerning undisclosed related-party transactions, were independently verified using filings from the Ministry of Corporate Affairs, SEBI disclosures, and company records. He alleged that high-value transactions lacked proper shareholder approval and transparency.
The bench, also including Chief Justice B R Gavai and Justice Atul Chandurkar, adjourned the hearing following Justice Chandran’s recusal.
Viceroy Research had earlier published an 85-page report accusing Vedanta’s parent company, Vedanta Resources Ltd, of being heavily indebted and operationally unstable. It claimed the group’s structure endangered creditors and dismissed the company’s rebuttal that the allegations were “selective misinformation.”
Viceroy also revealed it was shorting Vedanta’s debt — a trading strategy where investors profit from falling bond prices by borrowing and selling at current rates, then repurchasing at lower prices to return to the lender.
Vedanta has denied wrongdoing, stating the report aimed to damage its reputation. The case now awaits further judicial consideration.
