5 months ago
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Murugappa Group steadfast Cholamandalam Investment and Finance Company (CIFCL) connected Tuesday (December 23, 2025) dismissed firm misgovernance allegations arsenic "malicious and baseless", asserting that they were driven by ulterior motives.
Allegations were levelled against immoderate 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 web of related Murugappa Group entities, household members, and cardinal absorption unit (KMP).
Dismissing the allegation, CIFCL, successful a regulatory filing, said, "The full allegations are malicious and baseless, stated with ulterior motives".
Assuring investors of the company's performance, it said determination is nary revision successful its guidance provided successful the past, and the institution volition proceed to present arsenic per its board-approved concern plan.
The nett worthy of the institution stood astatine ₹26,783 crores arsenic of November 30, 2025, which is an summation of much than ₹3,000 crore implicit FY25 closing levels, it said, adding that this includes the conversion of ₹300 crore of the compulsorily convertible debentures (CCDs) issued successful FY24.
The equilibrium ₹1,700 crore of CCDs is besides expected to beryllium converted successful the adjacent 3 quarters, which volition further fortify the nett worthy of the company, it said.
With respect to ample currency deposits by the company, the filing said the institution predominantly caters to the needs of tiny roadworthy transport operators and self-employed non-professionals, numbering implicit 50 lakhs, dispersed implicit 1,700 branches crossed cities and towns successful India.
Such borrowers gain and wage successful cash, including for their EMIs, and the amounts truthful collected successful currency are deposited successful banks, it said.
"This postulation process and magnitude person been taxable to interior and outer scrutiny. This is besides covered by our robust interior systems and is taxable to a statutory audit. All KYC and income taxation compliance for specified postulation is done successful compliance with applicable ineligible requirements," it said.
In compliance with ineligible and accounting requirements, each related enactment transactions are disclosed successful afloat and implicit item successful our fiscal statements, it said.
"Allegations person besides been made that definite individuals are benefitting from the supra transactions. The institution categorically rejects specified statements. All payments to Board members, KMP and SMP of CIFCL person been made successful compliance with applicable instrumentality and person been afloat disclosed to the shareholders of the company," it said.
As regards the CSR contributions, it said they person been made to the respective NGOs/implementation agencies successful the signifier of enactment contracts to show their implementation progress.
"As tin beryllium seen from the above, distorted facts person been presented selectively, and manufacture practices person been twisted for the payment of this agency. We corroborate that each the operations of the institution are carried retired arsenic per the laws of the land, pursuing owed compliance with applicable regulatory guidelines," it added.
