New Delhi, Dec 23
Cobrapost news website on Tuesday alleged that for close to a decade, more than Rs 10,000 crore has moved through a web of related parties involving the Cholamandalam Investment & Finance Company Ltd. and a network of related Murugappa Group entities, family members, and key management personnel, raising raising regulatory and governance concerns.
“Our investigation further indicates that portions of these funds were routed onward through additional transactions, the nature and purpose of which merit closer regulatory scrutiny. The investigation has also found CIFCL (Cholamandalam Investment & Finance Company Ltd) to have made cash deposits of more than Rs. 25,000 crore across 14 banks over the past six years. Of these, eight are private entities and the rest are public sector banks. These figures are approximations and may vary if examined by a competent statutory authority,” Cobrapost alleged in a statement.
Cobrapost claimed its investigation is based on the examination of statutory filings and public disclosures, which show “a worrying pattern of large-value cash transactions, questionable related party arrangements, shocking statutory disclosure, and compliance gaps involving Cholamandalam Investment & Finance Company Ltd, one of India’s largest listed non-banking financial companies.”
Cobrapost further alleged that the principal recipient entities identified in the analysis include Cholamandalam MS General Insurance Co. Ltd. (CMGICL), Chola Business Services Ltd. (CBSL), and Murugappa Management Services, apart from CIFCL. A non-banking finance company (NBFC ), CIFCL has diverted sums worth around Rs. 6419 crore. This amount includes Rs. 4103 crore that CBSL, a privately held Murugappa Group entity, has received from CIFCL since 2015. Similarly, CMGICL has made payments amounting to around Rs. 3040 crore to nine Murugappa Group entities, including CBSL, since 2017.
Cobrapost also alleged that its analysis has identified some credit rating agencies, auditing firms, non-profit organisations such as Isha Foundation which have also received funds from CIFCL and other Murugappa Group companies. Based on filings and related records reviewed by Cobrapost, these entities together received approximately Rs. 120 crore during the period under examination, the news website statement alleged..
However, the Murugappa Group, in a stock exchange filing, dismissed the allegations as baseless and attributed them to ulterior motives.
"The entire allegations (in the report) are malicious and baseless stated with ulterior motives," said Cholamandalam Investment and Finance in the filing. The company re-assured investors that performance, asset quality and liquidity position remain robust.
"The Company wishes to reassure its investors that the performance of the Company, its asset quality and its liquidity position continues to be robust as disclosed in the audited financial statements of the Company for the half year ended September 2025. There is no revision in its guidance provided in the past and the Company will continue to deliver as per its Board approved business plan. The liquidity position of the Company continues to be strong with its cash and bank balances of Rs 14,900 crore as of November 30, 2025," Cholamandalam said.
As far as large cash deposits are concerned, the company stated that it predominantly caters to the needs of small road transport operators and self-employed non-professionals, numbering over 50 lakhs, spread over 1,700 branches across cities and towns in India. This collection process and amount has been subject to internal and external scrutiny. This is also covered by our robust internal systems and subject to statutory audit. All KYC and income tax compliance for such collection is done in compliance with applicable legal requirements.
In compliance with legal and accounting requirements, all related party transactions are disclosed in full and complete detail in our financial statements, Cholamandalam further stated.
