Mumbai, July 23 -- American short-seller Viceroy Research on Wednesday said that the promoters of the Vedanta Group were "siphoning margins" from listed group company Hindustan Zinc Ltd (HZL) by supplying commodity goods to it at inflated prices on an exclusive basis.

It alleged that Minova Runaya Pvt. Ltd (MRPL), a 49% promoter-owned entity, has an exclusive contract with HZL for the supply of products including resin capsules, rock bolting systems and wire mesh. Used in mining, these products are typically commoditized and low-margin, but MRPL was selling them at a 30% mark-up to HZL, the short-seller alleged, adding that the company does little manufacturing itself. HZL was MRPL's only customer, Viceroy added.

"This company (MRPL) ha...