SC judge recuses from hearing PIL against Vedanta; case to be heard by different bench

A Supreme Court judge on Friday (September 19) recused from hearing a public interest litigation (PIL) seeking action against Vedanta, HZL, and Vedanta Resources over alleged financial irregularities, regulatory violations, and price manipulation.

The PIL will now be listed before a different bench of the apex court.

The PIL cites the Viceroy Research report, which alleges financial manipulation, price rigging, and violations of regulatory norms by Vedanta, HZL, and Vedanta Resources. It claims that the companies engaged in practices such as draining listed Vedanta through disproportionately large dividends and artificial brand fees, and taking loans from Vedanta to purchase additional shares without proper disclosure of related-party transactions.

The petition also raises concerns over the non-disclosure of pending litigation and undisputed statutory dues by HZL. According to the PIL, the Viceroy Research report had made representations to regulatory authorities, including SEBI, RBI, and the Ministry of Corporate Affairs (MCA), but received no response.

The petitioner has sought directions for a full-scale investigation by SEBI, RBI, and MCA into the alleged financial manipulations, price rigging, and violations of corporate governance norms by Vedanta and its related entities.

The case is now expected to be listed before a fresh bench, which will take up the matter for further hearing.

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