New Delhi, Sept. 29 -- On Monday, when ratings agency Moody's disclosed that Vedanta Resources Ltd (VRL) is looking to raise $750 million through unsecured dollar bonds to refinance a $550 million loan, short-seller Viceroy Research had a pointed question.

What happened to the proceeds of a $600 million loan that the holding company of the Vedanta Group had raised in June? That loan too, after all, was availed to refinance the same $550 million private credit facility, which carries an eye-watering interest rate of 18%, the New York-based short-seller said.

"It appears these funds have been spent on other uses," the short-seller wrote in a note on Monday.

A spokesperson for Vedanta then clarified that the loan secured in June was only ...