Vedanta’s ESG ‘Facade’: Viceroy Research Alleges Pattern of Environmental Abuse and Social Harm
Moneylife Digital Team 03 October 2025
A new report by US-based short seller Viceroy Research LLC has accused the Vedanta group of entrenched environmental and social failures across India and Africa, alleging that the conglomerate persistently violates regulations, suppresses dissent, and misleads investors about its environmental, social and governance (ESG) performance. According to the report, Vedanta’s so-called ESG framework is little more than a public relations exercise, concealing what it describes as a systemic pattern of abuse. Viceroy argues that the company’s record makes its bonds 'uninvestable under any respected ESG policy', while also criticising institutional investors for relying solely on Vedanta’s disclosures without conducting independent scrutiny.
 
The report identifies five recurring areas of misconduct that span Vedanta’s operations. These include environmental abuse through fines and sanctions for toxic waste dumping, unsafe emissions and contaminated water bodies; widespread worker unrest over unsafe conditions and unpaid wages often met with violent police crackdowns; displacement of indigenous and farming communities without proper resettlement or jobs as promised; coercion and corruption through forged consents, manipulated hearings and harassment of activists; and a consistent failure to remediate even after regulators and courts have intervened.
 
The report highlights a series of case studies illustrating the breadth of Vedanta’s alleged misconduct:
 
1. Bhagabandh, Jharkhand: Villagers claim to live under ‘economic and physical siege’ by Vedanta’s ESL Steel plant, requiring clearance from private security to leave their homes. Protests have escalated into violent clashes, with locals accusing the company of false criminal charges.
 
2. BALCO, Chhattisgarh: Prolonged worker unrest and failure to rehabilitate families affected by pollution. Former chief minister Bhupesh Baghel has accused Vedanta of breaching state hiring policies.
 
3. Lanjigarh, Odisha: Vedanta was fined Rs71.16 crore for illegal fly ash dumping. Residents of Bhurkamunda village, nearly encircled by the Jharsuguda complex, demand relocation due to hazardous pollution and daily risks from heavy truck traffic.
 
4. KCM, Zambia: In a case described as “gross recklessness” by a Zambian High Court, Vedanta subsidiary Konkola Copper Mines poisoned the Kafue River in 2006, depriving thousands of clean water. The court found the company had “no regard for human life” and imposed damages of US$420mn (million).
 
5. Sijimali and Kodingamali, Odisha: Fierce protests by Adivasi and Dalit communities continue against Vedanta’s proposed bauxite mining. Both BJP and Congress leaders have joined demonstrations, signalling a rare loss of political support.
 
The report also notes that Vedanta is losing the political patronage it has long relied on. Figures from across the political spectrum, including leaders from Congress, BJP, CPI, DMK and regional parties, have openly opposed its projects in states ranging from Tamil Nadu and Odisha to Chhattisgarh and Jharkhand. This erosion of political backing adds to the company’s challenges, alongside mounting legal disputes and reputational damage.
 
For investors, the findings carry significant implications. Viceroy warns that Vedanta’s record undermines its ESG claims and highlights failures in institutional oversight. The report argues that while extraction and processing industries are inherently disruptive, Vedanta’s conduct goes far beyond accepted norms, with communities and regulators left to deal with long-term consequences. Institutional bondholders, it says, cannot escape responsibility by pointing to company disclosures, which it characterises as misleading.
 
The research group concludes that Vedanta’s ESG framework is a façade, concealing years of environmental harm, labour strife, coercive tactics and regulatory defiance. It compares the situation to an Erin Brockovich case ‘scaled up’, underscoring the risks not only to affected communities but also to investors who continue to fund the group’s operations.
 
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