Legal Opinion Highlights Defamation Case Against Viceroy Research

Former Chief Justice of India D Y Chandrachud has opined that the Vedanta Group has grounds to seek legal recourse against Viceroy Research following a report that made serious allegations against the conglomerate. The report, according to Chandrachud, contains elements that satisfy both civil and criminal defamation, given its public nature and the reputational damage inflicted on Vedanta.

Allegations and Their Impact

The Viceroy Research report accused Vedanta Resources of systematically draining the Indian-listed company, labeling the group structure as "financially unsustainable" and comparing it to a "Ponzi scheme". Vedanta has dismissed these allegations, which Chandrachud notes have caused significant harm to the company's business and reputation.

Credibility of Viceroy Research Questioned

Chandrachud further criticized the credibility of Viceroy Research, pointing out its history of taking short positions in listed companies and then publishing misleading reports for unlawful profit. The timing of the report and the researchers' dubious credentials were also highlighted as factors diminishing the report's veracity.