SC dismisses PIL seeking probe into allegations against Vedanta: ‘Foreign firms should not meddle in our affairs’

THEBUSINESSBYTES BUREAU

NEW DELHI, OCTOBER 10, 2025

The Supreme Court of India on Friday dismissed a Public Interest Litigation (PIL) seeking a probe into allegations made by Viceroy Research LLC, a US-based short-seller, against Vedanta Group firms. The bench, comprising Justices P.S. Narasimha and A.S. Chandurkar, expressed strong disapproval, questioning why foreign companies were interfering in India’s internal corporate matters.

The PIL, filed by lawyer Shakti Bhatia, aimed to instigate investigations by Indian regulators such as the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) into allegations of financial irregularities against Vedanta’s entities, including Vedanta Limited and Hindustan Zinc. The allegations were made by Viceroy Research, which has a history of targeting major corporations with reports suggesting financial misconduct.

Solicitor General Tushar Mehta, representing the Centre, SEBI, and RBI, argued that the petition was part of a larger scheme by foreign short-sellers to destabilize the Indian market. Mehta pointed out that such external entities often create misleading reports to manipulate stock prices and influence the market. He also questioned the credibility of Viceroy’s research, which he described as “systematic” attempts to disrupt Indian firms.

The bench responded sharply, asking, “Why are companies outside India so concerned about how we conduct our affairs?” and made it clear that the petition was being dismissed. In an unusual turn, the petitioner, represented by senior advocate Gopal Sankaranarayanan, withdrew the PIL. Sankaranarayanan clarified that the petition sought only a limited investigation by Indian regulators, not an endorsement of Viceroy’s allegations or its methodology.

“This petition does not warrant sweeping relief like the Adani-Hindenburg case,” Sankaranarayanan explained, attempting to distance the matter from more high-profile corporate disputes. However, the court maintained that issuing further notices would lead to a hefty cost for the petitioner.

In the backdrop of this ruling, the court reiterated its stance on curbing frivolous petitions that may undermine the country’s regulatory framework. It also addressed the concern that foreign agencies, like Viceroy Research, should not be allowed to influence India’s financial regulations or create a disruptive precedent for Indian markets.

The dismissal of the PIL comes after Viceroy’s allegations earlier this year, which were echoed by Shakti Bhatia, claiming corroboration of the financial misconduct charges. Viceroy Research, based in Delaware, has previously been involved in controversies related to its impact on international stock markets.

In a final remark, Solicitor General Mehta emphasized, “The highest court of the land cannot be taken for a joyride.” The ruling serves as a stern message to foreign entities attempting to shape India’s corporate landscape through litigation or market manipulation.

As the legal battle ends, Vedanta Group firms remain unscathed, while the Supreme Court’s message on foreign influence in domestic affairs resounds.