Vedanta Limited (VEDL) and Hindustan Zinc Limited (HZL) shareholders are in focus after a report of Viceroy Research revealed that Bhadram Janhit Shalika Trust (BJST) and PTC Cables Pvt Ltd (PTCC) — which appear to be undisclosed, promoter-controlled entities — have allegedly been funneling employee welfare funds into political lobbying activities.
Vedanta – Hidden Holdings, BJST and PTCC$VEDL and $HZL shareholders, Bhadram Janhit Shalika Trust and PTC Cables, appear to be undisclosed Agarwal-controlled entities, funneling intended employee benefits into politics. 1/ pic.twitter.com/MvCQJVGr3h
— Viceroy (@viceroyresearch) July 15, 2025
According to the report dated July 15, 2025, over ₹1,499 crore ($175.4 million) worth of dividends from VEDL and HZL were paid to BJST and PTCC since FY20. These entities are said to remain under the control of the Agarwal family and function more as political and lobbying fronts than employee welfare trusts. The report suggests these entities have been receiving significant dividends from VEDL and HZL, even though there is little evidence of them undertaking welfare activities for employees.
BJST, which appears to be structured as an Employee Welfare Trust (EWT), is expected to act in the best interests of Vedanta employees. However, the report claims it engages in influence campaigns and lobbying aligned with the promoter’s agenda rather than actual welfare programs. PTCC, a subsidiary of BJST, also figures prominently in the dividend payouts.
Data from the report shows that since FY20, PTCC and BJST have together received over ₹1,499 crore in dividends:
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FY25: ₹320.35 crore
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FY24: ₹373.30 crore
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FY23: ₹701.04 crore
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FY22: ₹3.80 crore
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FY21: ₹83.59 crore
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FY20: ₹166.61 crore
The analysis highlights that these entities have acted as hidden shareholder vehicles, collecting large sums while allegedly not serving their stated purpose.
Anil Agarwal, on July 10, 2025, defended the group’s transparency, saying:
“As far as this report has come, we are so transparent. My fundamental value is very important to remain disclosure and the transparent, and this is our strength.”
This revelation raises concerns among investors and governance watchers about disclosure standards, misuse of employee welfare funds, and the alignment of such entities with broader shareholder interests.
With growing scrutiny over corporate governance in India, the report is likely to intensify calls for greater transparency from promoter groups in disclosing related-party holdings and the actual utilization of welfare funds.
