Chennai: Investigative journalism platform Cobrapost has released a damning report of large-scale money laundering and related party fund diversions at Cholamandalam Investment and Finance Company (CIFCL), a Muruguppa Group company.
According to the report, almost ₹10,134 crore was allegedly routed through multiple transactions using the Murugappa Group company and eventually transferred to Murugappa Group family members.
The report says that the alleged transfers were done through a complex web of related party transactions (RPTs), inter-corporate dealings and remuneration structures over several years starting from FY2017-18.
Following the report, Cholamandalam has categorically denied the allegations, saying that the report is baseless and inaccurate.
“Distorted facts have been presented selectively, industry practices have been twisted for the benefit of this agency,” the company said in a press statement.
“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,” it further said.
Despite these allegations, there was not much of a reaction by the markets. In fact, Cholamandalam’s shares rose 5.8% in early trading on December 23. Analysts have also rubbished the allegations, saying that the payments made to various group entities is a common industry practice in NBFCs and there seems to be nothing worrying about the company’s shares.
