Mahindra & Mahindra Financial Services Limited (Mahindra Finance) detected a fraud involving approximately ₹150 crore in its loan portfolio during the fourth quarter of the financial year ended March 31st, 2024, at one of its branches in the northeastern region of India. The fraud was perpetrated through the forgery of Know Your Customer (KYC) documents related to retail vehicle loans, resulting in the misappropriation of company funds. Mahindra Finance is actively investigating the matter and has initiated corrective actions, including filing a police complaint and arresting certain individuals involved in the fraudulent activities. The estimated financial impact of the fraud is not expected to exceed ₹150 crore. The company has postponed the finalization of its financial results for the fourth quarter and the fiscal year 2023-24 to May 30th, 2024, to allow for the completion of the investigation and the implementation of necessary remedial measures. Additionally, the board of directors has approved an increase in the company’s borrowing limit from ₹1.10 lakh crore to ₹1.30 lakh crore. The board has also appointed M M Nissim & Co LLP and M P Chitale & Co as Joint Statutory Auditors for a three-year period, effective from the conclusion of the tenure of the existing auditors, Deloitte Haskins & Sells and Mukund M. Chitale & Co. Furthermore, the board has appointed Vijay Kumar Sharma as an Additional Director (Independent and Non-Executive) for a five-year term from May 15th, 2024, to May 14th, 2029. KSR & Co Company Secretaries LLP has been appointed as the Secretarial Auditor for the financial years 2025 and 2026, replacing Makarand M. Joshi & Co. Company Secretaries. The shares of Mahindra Finance closed with a decline of 5.47% at ₹263.60 per share on the Bombay Stock Exchange (BSE) on April 23rd, 2024.
Mahindra Finance Detects ₹150 Crore Fraud, Postpones Results Finalization
