Natural resources group, Vedanta Ltd, were targeted by a short seller in July 2025. Viceroy’s allegations in connection with Vedanta Ltd have four major components: i) Excessive dividends have been paid by Vedanta Ltd which are not supported by its free cash flow; ii) High dividends have caused debt to rise iii) related party fees paid are excessive; iv) asset values are inflated and liabilities have been hidden off balance sheet. The first two are factually correct, but do not imply accounting irregularities. The company rejects the two latter allegations. The auditor has reported unqualified audit opinions. No director resignations occurred since the allegations were made, nor has the company suffered any regulatory sanctions. A former chief justice DY Chandrachud described the short seller report as misleading, although it is unclear to what extent the allegations were investigated. Finally, the shares rose 32% in the six months after the allegations were published. Hence, the allegations so far have not been proven.

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