Relief for Vedanta as Supreme Court refuses to hear PIL citing Viceroy’s allegations

The Supreme Court on Friday declined to entertain a public interest litigation (PIL) that sought a probe into allegations levelled by US-based short-seller Viceroy Research LLC against Vedanta Limited, Hindustan Zinc Limited, and associated entities.

A Bench comprising Justices P.S. Narasimha and A.S. Chandurkar noted it was not inclined to hear the matter, prompting petitioner Shakti Bhatia to withdraw the plea. The petition had sought directions for regulators such as the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) to act on complaints filed following Viceroy’s July report.

Appearing for the petitioner, Senior Advocate Gopal Sankaranarayanan submitted that the plea sought a limited relief—directing regulators to discharge their statutory duties of inquiry and investigation. He stressed that unlike the Adani–Hindenburg case, the petitioner was not seeking the Court’s oversight or presumption of guilt, but only action from regulators on already filed complaints.

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Representing the Union government, Solicitor General Tushar Mehta contended that the PIL was “motivated” and “appeared orchestrated by the foreign short-seller itself”. He argued that the pattern reflected a broader strategy of overseas actors who “release damaging reports and then litigate to amplify market impact.”



Mehta further told the court that such petitions “cannot take the Supreme Court on a joyride,” adding that Indian regulators are capable of acting if they deem it necessary, Bar and Bench reported. The Court, concurring with the Centre’s stance, dismissed the plea as not maintainable.

According to the report, Mehta also noted that it was Viceroy, and not the petitioner, who wrote to SEBI after the PIL was filed.

The controversy began after Viceroy released an 87-page report in July 2025 alleging large-scale financial irregularities at Vedanta and its group firms. The report, titled “Vedanta – Limited Resources”, accused Vedanta Resources Limited (VRL) of functioning as a “parasite” dependent on cash from its Indian arm, Vedanta Limited.

Following the Supreme Court’s refusal to entertain the PIL, shares of Vedanta Ltd rebounded to trade in the green, hitting a day’s high of ₹485.00 on the NSE.