Chola Investment trashes corporate misgovernance allegations as malicious, baseless

Murugappa Group firm Cholamandalam Investment and Finance Company (CIFCL) on Tuesday (December 23, 2025) dismissed corporate misgovernance allegations as “malicious and baseless”, asserting that they were driven by ulterior motives.

Allegations were levelled against some of the companies of the Murugappa Group by the Cobrapost website. It alleged that it has identified transactions aggregating upwards of ₹10,000 crore involving CIFCL and a network of related Murugappa Group entities, family members, and key management personnel (KMP).

Dismissing the allegation, CIFCL, in a regulatory filing, said, “The entire allegations are malicious and baseless, stated with ulterior motives”.

Assuring investors of the company’s performance, it 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 net worth of the company stood at ₹26,783 crores as of November 30, 2025, which is an increase of more than ₹3,000 crore over FY25 closing levels, it said, adding that this includes the conversion of ₹300 crore of the compulsorily convertible debentures (CCDs) issued in FY24.

The balance ₹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, it said.

With regard to large cash deposits by the company, the filing said the company predominantly caters to the needs of small road transport operators and self-employed non-professionals, numbering over 50 lakhs, 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, it said.

“This collection process and amount have been subject to internal and external scrutiny. This is also covered by our robust internal systems and is subject to a statutory audit. All KYC and income tax compliance for such collection is done in compliance with applicable legal requirements,” it said.

In compliance with legal and accounting requirements, all related party transactions are disclosed in full and complete detail in our financial statements, it said.

“Allegations have also been made that certain individuals are benefitting from the above transactions. The company categorically rejects such statements. All payments to Board members, KMP and SMP of CIFCL have been made in compliance with applicable law and have been fully disclosed to the shareholders of the company,” it said.

As regards the CSR contributions, it said they have been made to the respective NGOs/implementation agencies in the form of work contracts to monitor their implementation progress.

“As can be seen from the above, distorted facts have been presented selectively, and industry practices have been twisted for the benefit of this agency. We confirm that all the operations of the company are carried out as per the laws of the land, following due compliance with applicable regulatory guidelines,” it added.