Archive · 24 Dec 2025
Cholamandalam Stock Drops Amid Allegations
Cholamandalam Investment and Finance Company's share price dropped by 9% over six trading days due to allegations made by Cobrapost.
The allegations include a lot of money transactions within the company and its related groups, unusual cash deposits, and high payments to auditors and family members.
Cobrapost claimed that the company has nearly ₹10,262 crore in related party transactions and ₹25,089 crore in cash deposits across 14 banks between 2019-20 and 2024-25.
The company, however, denied these allegations, stating that the cash deposits are part of normal business operations and that all transactions are disclosed in full and complete detail in the financial statements.
The stock has since rebounded, trading 4.3% higher on Tuesday.
So far in 2025, the stock has increased by 35%.
Cholamandalam Investment and Finance Company's share price fell 9% over six trading days due to allegations by Cobrapost.
Allegations include ₹10,262 crore in related party transactions and ₹25,089 crore in unusual cash deposits over five years.
Concerns raised about high auditor fees, payments to Murugappa family members, and insurance commission disclosures.
Analysts argue that cash deposits are positive and payments are industry standard practices.
Stock rebounded, trading 4.3% higher on Tuesday, with a 35% increase year-to-date in 2025.
- Who
- Cholamandalam Investment and Finance Company, Cobrapost, Murugappa Group
- What
- Allegations of corporate governance issues and stock price decline
- When
- Allegations made recently, stock decline over six trading sessions
- Where
- India
- Why
- Cobrapost report alleging corporate governance issues and related party transactions
Cobrapost
Cholamandalam
Related Party Transactions
Cobrapost
Alleged ₹10,262 crore in related party transactions, including ₹3,040 crore diverted to Murugappa Group companies.
Cholamandalam
Denied allegations, stated compliance with legal and accounting norms, and disclosed transactions in financial statements.
Cash Deposits
Cobrapost
Alleged ₹25,089 crore in unusual cash deposits across 14 banks between 2019-20 and 2024-25.
Cholamandalam
Explained cash deposits as part of normal business operations, subject to internal and external scrutiny.
Insurance Commission
Cobrapost
Alleged ₹942 crore in insurance commission earned between 2024 and 2025, raising questions about bundling insurance with vehicle loans.
Cholamandalam
No direct response to insurance commission allegations.
Professional Fees
Cobrapost
Alleged ₹1,036 crore in professional fees paid to nine related parties.
Cholamandalam
No direct response to professional fees allegations.
Work Contracts
Cobrapost
Alleged ₹1,654 crore in work contracts with Murugappa Group entities not reflected as related-party transactions.
Cholamandalam
No direct response to work contracts allegations.
- Company
- Cholamandalam Investment and Finance Company
- Allegations Made By
- Cobrapost
- Related Party Transactions
- ₹10,262 crore
- Cash Deposits
- ₹25,089 crore over last 5 years
- Insurance Commission Earned
- ₹942 crore (FY 2024-2025)
- Stock Performance
- Down 9% in six days, up 4.3% in early trading on Tuesday
- Year-to-Date Performance
- Up 35% in 2025
- Number of Branches
- 1,700
- Number of Borrowers
- Over 50 lakh
Sources
Cholamandalam Share Price: Allegations made by Cobrapost and what analysts make of them
Cobrapost Alleges More Than ₹10,000 Crore Related Party Transactions In Cholamandalam
5 allegations Cobrapost made against Cholamandalam and what the company said in clarification
Cholamandalam Investment and Finance Company refutes corporate governance allegations, mulls legal action
Cholamandalam Investment replies to 5 Cobrapost allegations; MOFSL shares target price
5 Reasons Motilal Oswal sees 19% upside for Cholamandalam Financial, ignores noise
