NEW DELHI/CHENNAI: Facing an allegation by a news website that it siphoned off more than Rs 10,000 crore through related-party transactions involving group entities, promoter family members, and key executives, the Murugappa Group firm Cholamandalam Investment and Finance Company (CIFCL) on Tuesday termed them “malicious and baseless,” driven by ulterior motives.
The website, Cobrapost, alleged on Tuesday that for close to a decade, more than Rs 10,000 crore has moved through a web of related parties involving CIFCL and a network of Murugappa Group entities, family members and key management personnel, 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 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,” it alleged in a statement.
Dismissing the allegation, Vellayan Subbiah, executive chairman, CIFL, in an exchange filing said the company predominantly caters to the needs of small road transport operators and self-employed non-professionals, numbering over 50 lakh, spread over 1,700 branches across cities and towns in India.
Such borrowers earn and pay in cash, including for their EMIs, and the amounts so collected in cash are deposited in banks, CIFL said on the large cash deposits received by the company.
Assuring investors of the company’s performance, Subbiah said 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 company’s net worth stood at Rs 26,783 crore as of November 30, 2025, which is an increase of more than Rs 3,000 crore over FY25 closing levels, it said, adding this includes the conversion of Rs 300 crore of the compulsorily convertible debentures (CCDs) issued in FY24.
The balance Rs 1,700 crore of CCDs is also expected to be converted in the next three quarters, which will further strengthen the net worth of the company, he said.