For almost a decade, Cholamandalam Funding & Finance Firm Ltd. (CIFCL), the flagship monetary arm of the 125-year-old Murugappa Group, has sat on the heart of an intricate net of economic transactions involving group corporations, privately held promoter entities, senior executives and members of the family, in keeping with an in depth investigation launched on Tuesday by Cobrapost.
Primarily based on statutory filings, annual studies and different public disclosures, Cobrapost estimates that greater than ₹10,000 crore moved by related-party preparations involving CIFCL and Murugappa-linked entities, whereas money deposits totaling roughly ₹25,000 crore have been made throughout 14 banks over the previous six years. The dimensions of those flows, the report argues, raises elementary questions on transparency, disclosure norms and regulatory oversight in a systemically essential lender that manages massive volumes of public and institutional capital.
CIFCL, a listed non-banking monetary firm (NBFC), reported excellent liabilities of over ₹2 lakh crore as of March 2025, most of it borrowed from banks, monetary establishments and the general public. In opposition to that backdrop, Cobrapost contends, the character and opacity of sure transactions benefit nearer scrutiny by regulators and shareholders alike.
Associated Events, Partial Disclosures and “Inventive Accounting”
On the heart of the investigation are funds routed to entities reminiscent of Chola Enterprise Providers Ltd. (CBSL), Cholamandalam MS Basic Insurance coverage Co. Ltd. (CMGICL), and Murugappa Administration Providers, a privately held promoter-controlled agency. Cobrapost’s evaluation means that CBSL alone acquired over ₹4,100 crore from CIFCL since 2015, largely recorded as work contracts and staffing providers, whereas CMGICL is alleged to have paid round ₹3,040 crore to Murugappa Group entities since 2017.
Murugappa Administration Providers, described as a key conduit, allegedly acquired about ₹675 crore from 17 group corporations over eight years, earlier than distributing massive sums onward to members of the family, senior executives, associated corporations, skilled companies and even sports activities our bodies and non-profits.
Whereas the cumulative worth of such related-party transactions recognized by Cobrapost exceeds ₹10,000 crore, the report notes that publicly disclosed related-party transactions throughout CIFCL and CMGICL filings quantity to solely about ₹2,161 crore. Many funds, although recorded as skilled charges, commissions or work contracts, don’t seem to have been disclosed as related-party transactions, elevating questions below the Firms Act, SEBI’s itemizing rules and Indian accounting requirements.
Cobrapost characterizes a number of of those preparations as cases of “inventive accounting,” arguing that classification selections could have obscured the true nature of relationships and flows of cash.
Money Deposits, Insurance coverage Ties and Questions of Compliance
Past related-party funds, the investigation highlights money deposits of roughly ₹25,000 crore made by CIFCL throughout a number of banks between 2020-21 and 2024-25. Whereas the corporate operates in lending and insurance coverage distribution, the sheer quantity of money transactions flagged by Cobrapost has prompted questions on inside controls and compliance practices at a big, regulated NBFC.
The report additionally attracts consideration to CIFCL’s insurance coverage fee earnings—almost ₹942 crore in a single latest yr—and its shut enterprise ties with CMGICL, a associated insurer. Cobrapost raises the query of whether or not insurance coverage merchandise could have been bundled with car or residence loans, a observe restricted below insurance coverage rules, although no regulatory discovering on this problem has been made public.
Funds to credit standing companies, auditors, commerce our bodies and non secular organizations additionally function within the report. In some instances, charges paid to ranking companies seem unusually excessive relative to trade norms, the investigation suggests, probably creating perceived conflicts of curiosity.
Company Response and a Broader Governance Debate
In response to Cobrapost’s detailed questionnaire, the Chola Secretariat mentioned that every one transactions have been carried out “as per the legal guidelines of the land” and in compliance with regulatory tips, including that the group would reply to acceptable authorities if required. The assertion warned towards what it described as makes an attempt to “tarnish the picture” of the group, although it didn’t handle particular questions raised within the investigation.
Cobrapost has rejected any suggestion of impropriety in its reporting and described the response as an try to intimidate journalists. No regulatory authority has but introduced a proper probe based mostly on the findings.
Nonetheless, the investigation has reopened a broader debate about governance requirements in India’s monetary sector, significantly amongst massive, listed NBFCs that rely closely on public and institutional borrowing. For minority shareholders, lenders and regulators, the problems raised transcend one firm, relating how related-party relationships are structured, disclosed and monitored—and whether or not present oversight mechanisms are enough for establishments that play a vital function in India’s credit score system.
As scrutiny intensifies, the Cobrapost findings are possible so as to add strain on regulators to look at whether or not the traces between compliance, disclosure and accountability have grown too skinny in components of India’s quickly increasing monetary panorama.
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