New Delhi, Dec 23 (IANS) CobraPost editor Aniruddha Bahal on Tuesday alleged that related-party transactions exceeding Rs 10,000 crore have taken place involving Cholamandalam Investment and Finance Company Limited and entities linked to the Murugappa Group, describing the matter as a clear case of conflict of interest.

Speaking to IANS, Bahal said the investigation found that auditors were charging unusually high fees.

While high fees in themselves may not be an issue, he stressed that auditors and credit rating agencies must not have conflicts of interest.

“In this case, group-linked companies are engaged in financial transactions with auditors and rating agencies, which clearly points to conflicts of interest,” he said.

Bahal further stated that the related-party transactions alone amounted to over Rs 10,000 crore and were the primary focus of the investigation.

He added that certain cash deposits identified during the probe were “completely shocking” and represented a significant grey area requiring closer scrutiny.

According to allegations published by CobraPost on Tuesday, more than Rs 10,000 crore in related-party transactions were routed over nearly a decade through a network of Murugappa Group-linked companies, family members and key managerial personnel of Cholamandalam Investment and Finance Company Limited, raising serious regulatory and corporate governance concerns.

In a statement, CobraPost further claimed that a portion of these funds was subsequently routed through additional transactions whose nature and purpose warrant detailed regulatory examination.

The portal also alleged that over the past six years, Cholamandalam Investment and Finance Company Limited deposited more than Rs 25,000 crore in cash across 14 banks -- eight private sector banks and the remaining public sector lenders.

It noted that these figures are indicative and could change if examined by a competent statutory authority.

CobraPost said its investigation is based on an analysis of legal filings and public disclosures, which, it claimed, reveal a troubling pattern of large cash transactions, questionable related-party arrangements, surprising legal disclosures and compliance gaps involving one of India’s largest listed non-banking financial companies.

The portal also alleged that its analysis identified several credit rating agencies, auditing firms and non-profit organisations, including Isha Foundation, that reportedly received funds from Cholamandalam Investment and Finance Company Limited and other Murugappa Group entities.

However, the Murugappa Group, in a stock exchange filing, rejected the allegations as baseless and motivated by malafide intent.

--IANS

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