Allegations of Sham Commodities Trading Operation by Vedanta Group
Allegations of Sham Commodities Trading Operation
In a recent report, US-based Viceroy Research has accused Vedanta Group of operating a sham commodities trading scheme through its subsidiary, Vedanta Semiconductors Pvt Ltd, to avoid being classified as an NBFC. The group strongly denies these allegations.
Viceroy claims that this operation allowed Vedanta Ltd to remit brand fees during a liquidity crisis. They allege that the scheme involved illicit trading practices that were meant to deceive regulators and lenders.
The report suggests that the semiconductor unit of Vedanta was used for zero-margin trading activities with offshore lenders, raising concerns about the transparency and legality of the operations.
These allegations have sparked a debate about the financial practices of Vedanta Group and the regulatory compliance of its subsidiaries.
