SC Judge Chandran Recuses from Vedanta Probe Plea on U.S. Short Seller Allegations

Speedy Summary

• supreme Court judge Justice K Vinod Chandran recused himself from hearing a plea regarding allegations made by U.S. short-seller Viceroy Research against anil Agarwal’s Vedanta Group.
• The plea, filed by advocate Shakti Bhatia, calls for investigations into claims of financial unsustainability adn severe creditor risks linked to the conglomerate.
• Bhatia alleges undisclosed related-party transactions involving Vedanta Resources Ltd (VRL), citing MCA21 filings, SEBI disclosures, and registrar of Companies records as evidence.
• Viceroy Research released an 85-page report accusing VRL of being “a heavily indebted parent” with “financially unsustainable” operations that pose high risk to creditors.
• The group has denied the allegations as “selective misinformation and baseless.”
• Viceroy disclosed it was shorting VRL’s debt stack in anticipation of financial challenges.

Indian Opinion Analysis

The recusal by Justice K Vinod Chandran brings further delays to resolving questions surrounding one of india’s major corporate players. Allegations of opaque transactions and notable credit risks have implications for investor confidence in Indian corporations globally. With short-sellers playing a role in highlighting vulnerabilities, openness and compliance will become increasingly critical for firms operating at scale. As regulators assess thes serious claims on financial sustainability made against Vedanta Resources Ltd, the outcome coudl set precedents regarding corporate governance practices in India’s buisness ecosystem.

Read More: The Hindu