Mahindra Finance detects
fraud in its retail vehicle loans portfolio amounting to ₹150 crore
Mahindra & Mahindra
Financial Services Limited (MMFSL) on Tuesday said it has detected a fraud in
its retail vehicle loans portfolio in the fourth quarter (Q4) of FY24 amounting
to ₹150 crore involving forgery of KYC (know your customer) documents at
one of its branches in the North East.
In respect of retail
vehicle loans disbursed by the company, the fraud involved forgery of KYC
documents leading to embezzlement of company funds, MMFSL said in a regulatory
filing.
The investigations in the
matter are at an advanced stage. The company estimates that the financial
impact of this fraud is unlikely to exceed ₹150 crores, the company
added.
The non-banking finance
company said investigations are underway, and necessary corrective actions have
been identified and are at various stages of implementation, including arrest
of few persons involved
In view of this development,
the agenda matters pertaining to approval of the audited standalone and
consolidated financial results of the company for Q4 and financial year ended
March 31, 2024, recommendation of dividend, AGM and related matters, which were
to be considered at the board meeting scheduled to be held on April 23, 2024,
are being deferred to a later date, which shall be intimated in due course, per
the filing.
The Audit Committee and the
board Meeting scheduled on April 23, 2024, will consider all other matters
scheduled to be discussed at the respective meetings, including increase in
aggregate borrowing limits and fund raise via issue of non-convertible
debentures
www.thehindubusinessline.com
dt.23.04.2024