New Delhi, Dec 23 (NationPress) Aniruddha Bahal, editor of CobraPost, has raised serious allegations regarding related-party transactions at Cholamandalam Investment and Finance Company Limited, claiming they exceed Rs 10,000 crore. These transactions involve entities associated with the Murugappa Group, illustrating a clear instance of conflict of interest.

In a discussion with IANS, Bahal indicated that the investigation revealed that auditors were charging exceptionally high fees.

While elevated fees alone may not pose a problem, he emphasized that auditors and credit rating agencies should be free of conflicts of interest.

“In this situation, companies linked to the group are engaged in financial dealings with auditors and rating agencies, which clearly indicates conflicts of interest,” he stated.

Bahal also noted that the total related-party transactions surpassed Rs 10,000 crore and were the primary subject of the investigation.

He mentioned that certain cash deposits uncovered during the inquiry were “entirely shocking” and represented a significant grey area that demands further examination.

CobraPost's allegations suggest that over the past nearly ten years, transactions exceeding Rs 10,000 crore were funneled through a network of companies tied to the Murugappa Group, including family members and key executives of Cholamandalam Investment and Finance Company Limited. This raises serious concerns regarding regulatory compliance and corporate governance.

Additionally, CobraPost asserted that a portion of these funds was subsequently transferred through other transactions, the nature and intent of which require thorough regulatory investigation.

Over the last six years, it was alleged that Cholamandalam Investment and Finance Company Limited deposited over Rs 25,000 crore in cash across 14 banks, including eight private sector banks and the balance in public sector banks.

These figures are preliminary and may vary upon review by an authoritative statutory body.

CobraPost stated that its investigation relies on an analysis of legal documents and public disclosures, revealing a concerning trend of large cash transactions, dubious related-party agreements, unexpected legal disclosures, and compliance deficiencies involving one of India's major listed non-banking financial institutions.

The portal also claimed that its analysis pinpointed several credit rating agencies, auditing firms, and non-profit organizations, including the Isha Foundation, that allegedly received funds from Cholamandalam Investment and Finance Company Limited and other Murugappa Group entities.

However, the Murugappa Group, in a statement to the stock exchange, dismissed the allegations as unfounded and driven by malicious intent.