Mahindra Finance detects Rs. 150crore fraud in vehicle loans

Mahindra& Mahindra Financial Services (Mahindra Finance) said it has detected Rs 150 crore-fraud involving forgery of Know Your Customer (KYC) documents in its retail vehicle loan portfolio at one of its branches in the North East.

The company said that the fraud was detected in the fourth quarter of FY24 and the investigation in this is underway. It has deferred the announcement of the results for the quarter ended March 2024 till May 30.

“During the end of fourth quarter of the financial year ended March 31, 2024, a fraud was detected at one of the company’s 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,” Mahindra Finance said in a filing to exchanges. The NBFC said it estimates that the financial impact of this fraud is unlikely to exceed Rs150 crore. It 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 the fourth quarter 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,” the NBFC said.

In a separate filing, the company said its board meeting will be held on May 30, 2024 to consider financial results for the period ended March 2024.