Lmst

#AuditFailure

Piramal Finance and the Rating Ruse: How India’s Credit Rating Agencies Manufacture Trust to Enable Systemic Expropriation
https://onceinabluemoon2021.in/2026/01/06/piramal-finance-and-the-rating-ruse-how-indias-credit-rating-agencies-manufacture-trust-to-enable-systemic-expropriation/
A research-driven critique of credit ratings as instruments of trust manufacture, regulatory capture, and financial extraction—mapped through the DHFL–Piramal finance continuum.
#CreditRatingsTrap, #ManufacturedTrust,a, #AuditFailure, #DHFLScam, #Alleged_Dawood_Mirchi_RKW_DHFL_BJP_Collusion, #Seize_Cronies_Fairplay_for_DHFL_Victims,

Under India’s captured financial regime during BJP–NDA rule (2014–2025), credit rating agencies—dominated by the CRISIL-ICRA-CARE triopoly—have shifted from risk sentinels to enablers of crony expropriation, sustaining a cycle of manufactured trust, retail entrapment, delayed collapse, and oligarchic consolidation. The Piramal Finance–DHFL case is emblematic: despite whistleblowers, Cobrapost exposés, and KPMG audits revealing ₹29,000–34,000 crore in promoter diversion, investment-grade ratings persisted until DHFL’s 2019 default, enabling reckless borrowing. Post-collapse, Piramal—amid allegations of political shielding and elite proximity—acquired DHFL through a controversial IBC resolution that priced ~₹45,000 crore in suspected fraud recoveries at Re 1, while ~2.5 lakh retail depositors suffered 55–77% haircuts and losses exceeding ₹50,000 crore across NBFC failures. Rapidly rehabilitated via reverse-merger alchemy, Piramal Finance secured fresh AA+/Stable ratings in January 2026, lowering funding costs and restoring legitimacy even as governance risks linger. This pattern—issuer-pays conflicts, oligopolistic convergence, and “too-connected-to-fail” pricing—reveals CRAs as architects of performative credibility that privatizes distressed assets and socializes ruin, demanding structural rupture through de-captured ratings, personal liability, and retail-centred justice.

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