Former CJI Dr. D.Y. Chandrachud denounces Viceroy’s Report on Vedanta as baseless and defamatory

THEBUSINESSBYTES BUREAU

NEW DELHI, JULY 20, 2025

In a significant development, Vedanta Limited has made public a comprehensive legal opinion issued by former Chief Justice of India, Dr. D.Y. Chandrachud, firmly rejecting the allegations made by US-based short-seller Viceroy Research Group. The 20-page opinion categorically finds no evidence of wrongdoing by Vedanta and sharply criticizes the report’s credibility, intent, and methodology. The company has also submitted this legal opinion to the stock exchanges, reinforcing its stance against what it calls a misleading and manipulative publication.

Dr. Chandrachud’s legal analysis condemns the Viceroy report as defamatory and lacking factual and legal credibility. He describes the report as a calculated attempt to manipulate the market for unlawful financial gain and asserts that it would not withstand legal scrutiny under Indian jurisprudence. The opinion suggests that Vedanta is well within its rights to seek legal remedies and protection from Indian courts for the reputational damage caused.

Raising serious doubts about the authors of the report, the former Chief Justice questions the credentials of the so-called researchers and points to their history of involvement in similar litigations globally. He argues that the timing of the report is particularly suspect, coinciding with positive credit momentum for Vedanta and the company’s proposed demerger of certain group entities. Dr. Chandrachud suggests that the report was strategically released to derail the company’s corporate plans and depress its market valuation, to the benefit of the short-seller.

Highlighting what he describes as a consistent modus operandi, Dr. Chandrachud outlines how Viceroy first takes short positions in the target company’s stock or bonds, and then releases a sensationalized report based on unverified and publicly available data, designed to trigger panic and a stock price decline. In Vedanta’s case too, he notes, the report is laced with inflammatory language and unsubstantiated innuendoes, aimed more at grabbing headlines than presenting a balanced view.

Dr. Chandrachud further argues that the report demonstrates no public interest motive. Instead, it appears driven by financial opportunism. He states that Vedanta, operating as a listed entity in a highly regulated environment, has so far faced no adverse findings from regulators or credit rating agencies. The company, he observes, has consistently complied with disclosure norms and regulatory filing requirements.

In his conclusion, the former Chief Justice warns that such malicious and misleading reports not only attempt to tarnish the reputation of well-regulated companies like Vedanta, but also risk undermining confidence in India’s corporate governance standards and regulatory institutions. By portraying compliant entities as non-compliant without credible evidence, these actions erode trust in the broader financial system.

Dr. Chandrachud’s opinion is a strong vindication for Vedanta and a powerful rebuttal to the Viceroy report, signalling that India’s legal and regulatory institutions are vigilant against market manipulation and reputational assaults under the guise of “research.”