Hindustan Zinc Ltd (HZL) CEO Arun Misra on Friday rejected US short-seller Viceroy's allegation that Vedanta has violated the brand fee agreement with the government, saying that a due process was followed by the board.
Viceroy Research in a recent report had alleged that Vedanta violated its agreement with the government with regard to collection of brand fee from HZL.
"We are very clear in our approach. We take matters to board after due consultation, legal vetting...we share (the proposals) with Government of India, nominee director before the board meeting. They have adequate time to go through (the proposals)," he told PTI.
It is for the board to approve or disapprove a proposal, he said adding that the due process was followed while approving the brand fee and "we don't find any issue in that." According to the latest shareholding data, the government owns a 27.92% stake in HZL, while Vedanta has a 61.84% stake.
Viceroy Research has published a series of reports against Vedanta and its subsidiaries over the last few days.
In October 2022, Vedanta imposed a 'brand fee' on HZL. This is not only an uncommercial contract, but a breach of the company's shareholder agreement with the government, Viceroy had said.
As part of privatisation process, Vedanta had acquired a stake in HZL from the Centre in 2002.
