Supreme Court refuses to entertain plea against Vedanta over Viceroy Report

The Supreme Court has refused to entertain a PIL seeking a thorough investigation by the Regulatory bodies such as SEBI, RBI and MCA into the affairs of Vedanta Limited, Hindustan Zinc Limited and Vedanta Resources Limited along with its sister concern.

A bench of Justices PS Narasimha and AS Chandurkar dismissed the petition after it was withdrawn by the petitioner.

Notably, two Supreme Court judges had already recused from hearing the PIL. A bench of CJI Gavai, Justice Chandran and Justice Chandurkar had first taken up the PIL filed by Shakti Bhatia raising 'crucial and important question' over the regulatory bodies and their willingness to conduct enquiries into Vedanta.

Yesterday, Solicitor General Tushar Mehta told the bench the PIL was motivated and “appeared orchestrated by the foreign short-seller itself”. He stated that a broader strategy of overseas actors who “release damaging reports and then litigate to amplify market impact", could be seen.

The PIL was filed on the basis of a United States based investigative financial research firm namely Viceroy Research LLC which in July published a Research Report highlighting commission of fraud, financial manipulations, price rigging, and regulatory violations by public listed entities namely Vedanta Limited, Hindustan Zinc Limited and Vedanta Resources Limited along with its sister concerns.

Court was told that Viceroy had published articles wherein they have represented and filed complaint before regulatory bodies SEBI and RBI, however, there was no response. "Upon perusal of the Report dated 09.07.2025, available in the public domain, it appears that there are certain financial irregularities within the Vedanta Group which is also buttressed by the fact that Vedanta Resources was de-listed from London Stock Exchange in 2018, which at its time was the highest grossing IPO for a non-UK based company in LSE history and also the fact that now Vedanta has filed an application before the National Company Law Tribunal (NCLT), Mumbai for de-merger of its various entities", the plea states.

Stating that Vedanta Subsidiaries includes its two crown jewels - Hindustan Zinc Limited (HZL), wherein Government of India is a minor stakeholder with 29.54% stake and Bharat Aluminium Limited Company wherein Government of India is major stakeholder with 49% stake, Supreme Court has been told that it becomes more so important for regulatory body such as SEBI to investigate into the allegations.

"Any irregularities is operation of the said companies will not only prejudice the minority shareholders and public at large but will also hamper the government money which shall result in major repercussions to the economy and the various government policies. The inaction on part of SEBI and other regulatory authorities in the present scenario also lays down the major problem with privatization of government entities.", the PIL adds.

Court has further been told that the investigation by SEBI would not only protect the shareholders and investors of VEDL but will also protect the stake of Government of India in such companies as well as other minority shareholders.

Case Title: Shakti Bhatia vs. Union of India

Bench: Justices Sanjay Kumar and Alok Aradhe

Hearing Date: October 10, 2025