New Delhi, Dec 23 (NationPress) The Cobrapost news outlet recently claimed that for nearly a decade, over Rs 10,000 crore has been transferred through a complex network of related entities involving Cholamandalam Investment & Finance Company Ltd. and various affiliates of the Murugappa Group, family members, and key management personnel, raising significant regulatory and governance issues.

“Our investigation further suggests that parts of these funds were funneled through subsequent transactions, which deserve closer regulatory examination. The inquiry has also revealed that CIFCL (Cholamandalam Investment & Finance Company Ltd) deposited over Rs 25,000 crore across 14 banks in the last six years. Of these, eight are private banks while the remaining are public sector banks. These numbers are approximations and may differ upon review by a competent statutory authority,” Cobrapost stated.

Cobrapost asserted that its investigation is grounded in the analysis of statutory filings and public disclosures, indicating “a troubling trend of large cash transactions, dubious related party dealings, alarming statutory disclosures, and compliance deficits concerning Cholamandalam Investment & Finance Company Ltd, one of India’s most significant listed non-banking financial institutions.”

Additionally, Cobrapost identified principal recipient entities in its analysis, including Cholamandalam MS General Insurance Co. Ltd. (CMGICL), Chola Business Services Ltd. (CBSL), and Murugappa Management Services, alongside CIFCL. As a non-banking finance company (NBFC), CIFCL allegedly diverted approximately Rs 6419 crore, which includes Rs 4103 crore received by CBSL, a privately held entity of the Murugappa Group, since 2015. In a similar vein, CMGICL has made payments totaling around Rs 3040 crore to nine Murugappa Group entities, including CBSL, since 2017.

Cobrapost's analysis also uncovered that some credit rating agencies, audit firms, and non-profit organizations such as Isha Foundation have received funds from CIFCL and other Murugappa Group companies. According to the records reviewed by Cobrapost, these entities collectively received approximately Rs 120 crore during the period under review.

However, the Murugappa Group has responded to these allegations in a stock exchange filing, labeling them as unfounded and motivated by ulterior intentions.

"The claims made in the report are malicious and unfounded, stemming from ulterior motives," stated Cholamandalam Investment and Finance in its filing. The company reassured investors of its strong performance, asset quality, and liquidity position.

"The Company wants to emphasize to its investors that its performance, asset quality, and liquidity remain robust as disclosed in the audited financial statements for the half-year ending September 2025. There is no change in the guidance previously provided, and the Company will continue to perform according to its Board-approved business plan. The liquidity position remains strong with cash and bank balances of Rs 14,900 crore as of November 30, 2025," Cholamandalam stated.

Regarding the substantial cash deposits, the company noted that it primarily serves the needs of over 50 lakh small road transport operators and self-employed non-professionals, distributed across 1,700 branches in cities and towns throughout India. This collection mechanism and amounts have undergone thorough internal and external scrutiny, supported by robust internal systems and statutory audits. All KYC and income tax compliance related to these collections are adhered to as per applicable legal standards.

In alignment with legal and accounting regulations, all related party transactions are fully disclosed in detail in our financial statements, Cholamandalam further asserted.