Viceroy claimed that Vedanta used a $900 million loan from Oaktree Capital Management to finance the payout.
Vedanta has come under scrutiny after reports emerged that the Singapore Police Force (SPF) is reviewing a complaint on how the Indian conglomerate funded its 2024 dividend.
Vedanta’s shares closed at ₹455.75, having been bound in a tight intra-day range.
What Is The Allegation?
The SPF is reviewing the allegations made by U.S.-based short seller Viceroy Research that Vedanta improperly funded its 2024 dividend, according to a report by Reuters.
Viceroy claimed that Vedanta used a $900 million loan from Oaktree Capital Management, along with accounting adjustments, to artificially boost its reserves and finance the payout. The short seller alleged that the company later repaid the loan and reversed write-offs through entities based in Singapore.
Viceroy has maintained that its findings are based on publicly available reports, forensic analyses of company filings, and site visits.
This comes on the back of another Viceroy report, which accused Vedanta Resources, the UK-based parent that owns 56% of Vedanta, of draining resources from its Indian unit. It also alleged that Vedanta’s dividend policy was structured to serve the parent company’s financing needs.
Vedanta had dismissed those claims.
Vedanta’s Response
Vedanta has firmly rejected the allegations, calling them “baseless” and “malicious.” The company told Reuters that all dividends were paid in full compliance with applicable laws. It clarified that no official investigation by the Singapore Police Force (SPF) was underway, nor had it been contacted by the SPF.
In response to the Viceroy’s claims, Vedanta said the reports were ill-informed and deliberately misleading. The SPF, when contacted, declined to comment on the matter, according to reports.
Demerger Challenges
Back home, Vedanta has come under pressure after the Indian government raised objections to its demerger plan at the National Company Law Tribunal (NCLT) meeting on Wednesday. The government highlighted that the proposed demerger could weaken Malco Energy’s finances. It also flagged asset misrepresentations and hidden liabilities, among other concerns.
Stock Watch
The stock has declined over the last two sessions.
Retail sentiment on Stocktwits has remained ‘bearish’. It was ‘neutral’ a week earlier.
Year-to-date, the shares have gained a marginal 2.5%
For updates and corrections, email newsroom[at]stocktwits[dot]com. <