Mahindra Finance detects fraud in its retail vehicle loans portfolio amounting to ₹150 crore

Posted on by

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.