A detailed investigation by Cobrapost, based on statutory filings and public disclosures, has uncovered a disturbing pattern of large-value cash transactions, opaque related-party dealings, disclosure lapses, and compliance gaps involving Cholamandalam Investment & Finance Company Ltd. (CIFCL). The CIFCL is one of India’s largest listed non-banking financial companies (NBFCs) and a flagship entity of the 125-year-old Murugappa Group.
The investigation indicates that transactions aggregating over ₹10,000 crore have been routed over nearly a decade through a complex web of related Murugappa Group entities, family members, and key management personnel (KMP). In addition, CIFCL is found to have deposited approximately ₹25,000 crore in cash across 14 banks over the past six years. These figures are based on disclosed data and may increase upon examination by statutory authorities.
Key Entities and Transaction Flows
The principal entities identified as recipients or conduits include Cholamandalam MS General Insurance Company Ltd. (CMGICL), Chola Business Services Ltd. (CBSL), and Murugappa Management Services Pvt. Ltd., in addition to CIFCL itself.
Cobrapost’s analysis suggests that CIFCL diverted approximately ₹6,419 crore, including ₹4,103 crore paid to CBSL since 2015. CMGICL, a related insurance entity, paid around ₹3,040 crore to nine Murugappa Group companies between 2017 and 2025. These transactions were largely recorded under heads such as professional fees, work contracts, insurance commission, and service charges.
Murugappa Management Services, another privately held promoter-controlled entity, emerges as a critical intermediary. It received ₹675 crore from 17 group companies between 2017-18 and 2024-25, including ₹103 crore from CIFCL, before redistributing funds to family members, senior executives, related companies, credit rating agencies, sports bodies, and other entities.
Cobrapost estimates that ₹353 crore was paid to Murugappa family members and close associates through this route. Among the largest beneficiaries were:
- Ravichandran Venkatachalam – over ₹55 crore
- MM Venkatachalam – over ₹44 crore
- MM Murugappan – approximately ₹42.53 crore
- Murugappa Vellayan Subbiah – ₹34.84 crore
- Murugappan Arunachalam Alagappan – ₹35.47 crore
Senior executives were also major recipients. Ramesh K.B. Menon, the Group’s head of human resources, received approximately ₹54 crore in salary between 2017-18 and 2021-22, while Srinivasan N. received around ₹21 crore.
Disclosure and Regulatory Concerns
Cobrapost’s findings suggest that while total related-party transactions across CIFCL, CBSL, CMGICL, and Murugappa Management Services exceed ₹10,000 crore, disclosures made by these entities account for only about ₹2,161 crore. Several large transactions identified in the investigation do not appear to have been disclosed as related-party transactions (RPTs), raising concerns under the Companies Act, 2013, SEBI’s LODR Regulations, IRDAI guidelines, and Indian Accounting Standards.
CIFCL alone reported ₹1,654 crore in work-contract payments to over a dozen Murugappa Group companies, of which ₹1,628 crore went to CBSL. These transactions do not appear to have been disclosed as RPTs. CIFCL also recorded ₹642 crore in professional fees paid to five group companies and ₹19 crore paid to 12 family members as salary or professional fees.
CBSL, after receiving funds from CIFCL, further made payments to other group entities and individuals, including ₹16 crore in salary to Venkatachalam A between 2023 and 2025. The same individual also received ₹18 crore from Murugappa Management Services during the period.
Insurance, Commissions, and Potential Bundling
CIFCL operates in insurance distribution and reportedly earned ₹942 crore in commission income between 2024 and 2025, a sharp increase over previous years. Given that CIFCL’s core business involves vehicle and home financing, the investigation raises questions over potential ‘insurance bundling’, a practice prohibited by IRDAI.
CMGICL disclosed related-party transactions of only ₹116 crore, while Cobrapost identified transactions aggregating ₹1,578 crore, including ₹1,036 crore recorded as professional fees paid to nine related entities.
Payments to Rating Agencies and Non-Profits
Cobrapost finds that CIFCL paid over ₹103 crore to credit rating agencies and audit firms. One rating agency received around ₹18 crore over a decade, while its group entities received payments as high as ₹5 crore in a single year, even as CIFCL’s debt-to-equity ratio rose sharply.
Additionally, over ₹20 crore was paid to 21 non-profit, religious, and trade organisations, including ₹1.99 crore to Isha Foundation and Isha Leadership Academy, recorded as work contracts rather than donations, potentially circumventing CSR norms.
Scale of Public Exposure
CIFCL’s business is sustained almost entirely by public and institutional borrowings. As of 31 March 2025, its outstanding liabilities stood at ₹2,01,647 crore, including ₹1,74,946 crore in borrowings, up from ₹50,567 crore in 2019. By contrast, CIFCL’s net worth is estimated at ₹8,171.84 crore, far below its exposure. Even its market capitalisation of approximately ₹1.24 lakh crore falls significantly short of total liabilities.
Response and Intimidation Allegation
In line with journalistic standards, Cobrapost sent detailed questionnaires to CIFCL’s management and beneficiaries. The response received from the Chola Secretariat did not address any specific findings and instead alleged criminal intent and threatened legal action. The email carried no named or signed authorised signatory.
Cobrapost has categorically denied any intent to blackmail or defame and has condemned the response as an attempt to intimidate journalists.
Conclusion
The scale, structure, and disclosure practices surrounding the transactions identified raise serious questions about corporate governance, transparency, regulatory compliance, and fiduciary responsibility, particularly in a listed NBFC handling vast sums of public money. The findings underscore the need for urgent regulatory scrutiny to safeguard investor interests and public trust.
(Aniruddha Bahal is the founder and editor of Cobrapost)
