Vedanta Ltd. has revealed that it obtained a detailed legal opinion from former Chief Justice of India, Dr. D.Y. Chandrachud, regarding the controversial Viceroy Research report. The legal advice, spanning 20 pages, questions the credibility and intent of the U.S.-based short-seller’s report, asserting that it makes defamatory and misleading claims aimed at manipulating the market for unlawful financial gains. Vedanta has filed this opinion with the stock exchanges.
According to the former CJI, the report is unlikely to withstand scrutiny under Indian law. He emphasized that the report lacks objectivity and legal grounding, and suggested that Vedanta is well within its rights to seek legal recourse for defamation through appropriate channels in the Indian judiciary.
Report’s Credibility Called into Question
Dr. Chandrachud’s assessment raises serious doubts over the timing, authorship, and credibility of the Viceroy report. He stated that the questionable reputation of the researchers behind the report undermines its authenticity. He also cited multiple legal actions filed against Viceroy in India and globally for publishing similar reports targeting other companies.
The timing of the report, according to the legal opinion, appears to be deliberately chosen to disrupt Vedanta’s ongoing credit and refinancing success. Notably, the report coincided with the proposed demerger of some group entities, a critical phase for Vedanta’s strategic growth.
Use of Provocative Language and Manipulative Tactics
The legal opinion also flagged the use of “provocative and defamatory” language in the report, describing it as irresponsible and speculative, lacking any verifiable evidence. Dr. Chandrachud underlined that the sensational tone of the report appears intended not to inform but to shock the market and damage the company’s reputation.
Three specific reasons were cited for the report’s lack of credibility:
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Viceroy’s established track record of profiting from short-selling following such publications
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The dubious reputation of the researchers behind the report
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The suspicious timing of the report’s release amid Vedanta’s key financial restructuring
Allegations of Deliberate Market Manipulation
Dr. Chandrachud outlined Viceroy’s alleged modus operandi: taking short positions in the target company’s shares or bonds, publishing distorted “research” reports without any independent verification, and capitalizing on the resultant panic in the market.
He further stated that the report’s real intent seems to be damaging corporate trust and market credibility, not to serve public interest. “There is no evidence that the report was driven by public concern… rather, it was released with intent to manipulate markets,” he added. He affirmed Vedanta’s right to take action against both the organization and the individuals involved.
Undermining Regulatory Trust
The former CJI emphasized that Indian listed companies operate under a strict regulatory regime, designed not only to prevent misconduct but also to promote ethical practices. Despite this framework, malicious and misleading reports like Viceroy’s aim to portray compliant companies as non-compliant, potentially damaging trust in India’s regulatory institutions and capital markets.
Dr. Chandrachud concluded that Vedanta functions within a robust, multilayered regulatory system, and to date, has not received any adverse findings from regulators or rating agencies. “Vedanta’s disclosures are in full compliance with applicable laws and regulatory filing norms,” he noted. He pointed out that the report is largely based on publicly available data, lacking any credible or independently verified substance.
Global Brokerages and Rating Agencies Stand by Vedanta
Despite the Viceroy report, leading global brokerage firms including J.P. Morgan, Bank of America, and Barclays have continued to support Vedanta, citing its improving credit profile and attractive valuations. Domestic rating agencies have also reaffirmed their confidence:
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CRISIL maintained Vedanta’s rating at AA, and Hindustan Zinc’s at AAA
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ICRA also reaffirmed Vedanta’s rating at AA
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
Former CJI D.Y. Chandrachud Strongly Criticizes Viceroy Vedanta Report
