Vedanta Share: ₹1030 crore refund, big disclosure after ED investigation- Vedanta share fell again:

News Topical, Digital Desk : Anil Agarwal-led Vedanta Group is once again in controversy. Research firm Viceroy Research has claimed that Vedanta Limited (VEDL) had to refund brand fees of Rs 1,030 crore from its parent company Vedanta Resources Ltd (VRL), and all this happened under the pressure of ED (Enforcement Directorate) inquiry. The report claims that the FY24 annual report showed brand fee refund for the first time without any clear reason. Viceroy claims that this refund happened after the ED investigation in 2023 when the agency questioned the validity of brand fee transfer. The stock has fallen by -5 percent in a month. The stock has fallen by -3 percent in a year. FIIs have continued to sell the stock. Their stake was 12.61 percent in July 2024, which has fallen to 10.6 percent in June 2025.

ED action- In July 2023, ED sent summons to VEDL's CFO and senior officers. It is alleged that whenever VRL needed money, VEDL made payments in the name of brand fees - a kind of interest-free rolling credit facility.

CFO's resignation- According to the report, new CFO Sonal Srivastava appeared before ED during the investigation and resigned within five months, while CEO Sunil Duggal did not appear.

How much was paid- Brand fee of ₹3,085 crore in FY25:- According to Viceroy, this brand fee is about 15% of VEDL's FY25 net income. With this money, VRL paid off its $4.9 billion debt and $835 million interest installments.

Viceroy's allegation- Viceroy says that Vedanta Group is based on "unsustainable debt, looted assets and accounting fiction". They claim that the entire structure has been created in such a way that the parent company continues to draw money from the Indian unit VEDL.

Vedanta's response - Vedanta has described Viceroy's report as "false propaganda mixed with incorrect information". The company says that Viceroy did not contact anyone before publishing the report and this report has been prepared only with the intention of tarnishing the image of the group. Questions on governance: Lack of transparency in inter-company transactions and resignation of CFO are sure to increase the concern of investors. Brand fee = hidden loan? If Viceroy's allegation is correct, then brand fee is actually like giving a loan to the parent company, which can cause loss to minority shareholders.

Due to falling confidence in the market, the shares can come under pressure. Especially when institutions like ED are investigating. If you are a shareholder of Vedanta Limited or are thinking of buying, then keep these things in mind- The company's governance track record is now under question. If there is no transparency in transactions like brand fees, then long term investors may suffer losses. It would be better to be cautious about this stock until the official position of ED or SEBI comes or any clear clarification is received from the company.