Mahindra Finance confirms ₹150 Crore fraud in retail car loan portfolio at a branch

24 Apr 2024 , 11:48 AM

Mahindra Finance said on Tuesday that it found around ₹150 Crore in fraud in its retail car loan portfolio at one of its locations and postponed its board meeting to ratify the financial results for 2023-24.

The Mahindra & Mahindra Financial Services board was expected to meet on Tuesday to ratify the March quarter and fiscal year 2023-24 results.

In a regulatory statement, the business stated that the new date for the board meeting would be announced later.

Mahindra Finance stated that a scam was discovered at one of the company's locations in the northeast near the end of the fourth quarter of the fiscal year ending March 31, 2024.

In the case of retail vehicle loans disbursed by the company, the fraud involved forgery of KYC documents, which resulted in embezzlement of company funds. The investigation into the matter is progressed. The company estimates that the financial impact of this fraud will not exceed ₹150 Crore," Mahindra Finance stated.

Investigations are ongoing, and appropriate corrective steps have been identified and are in various stages of implementation, including the arrest of a few people implicated, the statement said.

At around 11.03 AM, Mahindra & Mahindra Financial Services was trading 1.50% lower at ₹259.50, against the previous close of ₹263.45 on NSE. The counter touched an intraday high and low of ₹265.50 and ₹258.50, respectively.

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