The Singapore Police Force (SPF) is currently reviewing a complaint filed by U.S.-based short seller Viceroy Research, which alleges that Indian natural resources conglomerate Vedanta Ltd improperly funded its 2024 dividend. According to documents obtained by Reuters, Viceroy claims that Vedanta used a $900 million loan from Oaktree Capital Management to artificially inflate its reserves, enabling a dividend payout that was not supported by actual cash earnings. Vedanta has vehemently denied these allegations, stating that all dividends were paid in full compliance with applicable laws and labeling Viceroy’s claims as “baseless” and “malicious.”
Viceroy’s complaint, submitted to the SPF on August 7, further accuses Vedanta of employing accounting maneuvers to reverse write-offs through Singapore-based entities after repaying the loan. The short seller asserts that its findings are based on publicly available reports, forensic analyses of Vedanta’s financial filings, and on-site visits to its assets. The SPF has acknowledged receipt of the complaint, assigning it a reference number, but has declined to comment on the matter.
This is not the first time Vedanta has faced accusations from Viceroy. In July, the short seller published a report alleging that Vedanta Resources, the UK-based parent company holding a 56% stake in Vedanta Ltd, was “systematically draining” its Indian subsidiary to meet its own financing needs. Vedanta Ltd has consistently refuted these claims, calling them a “malicious combination of selective misinformation and baseless allegations.”
The controversy comes amid ongoing challenges for Vedanta, including opposition from the Indian government to its 2023 demerger plan, which aimed to split the company into four separate entities. This followed an unsuccessful attempt to take the group private in 2020. Vedanta Resources has since focused on reducing its debt, targeting a $1.2 billion reduction to bring net debt down to $11.1 billion by fiscal 2025.
As the SPF continues its review, the allegations have cast a shadow over Vedanta’s financial practices, raising questions about corporate governance and transparency in one of India’s largest natural resources firms.