Mahindra Finance disclosed Tuesday that it has uncovered a fraud amounting to approximately Rs 150 crore within its retail vehicle loan portfolio at one of its branches, prompting the postponement of its board meeting slated to approve the financial results for the 2023-24 fiscal year.
The Mahindra & Mahindra Financial Services board had originally planned to convene on Tuesday to endorse the financial results for both the March quarter and the entirety of the fiscal year.
In a regulatory filing, the company announced that a new date for the board meeting would be communicated later.
The fraud, detected towards the end of the fourth quarter ending March 31, 2024, occurred at one of the company's branches in the northeastern region.
Mahindra Finance specified that the fraud pertained to retail vehicle loans disbursed by the company and involved the forgery of KYC (Know Your Customer) documents, resulting in the misappropriation of company funds. The company estimated that the financial impact of the fraud is unlikely to exceed Rs 150 crore.
Investigations into the matter are progressing, with necessary corrective actions identified and at various stages of implementation, including the arrest of several individuals involved.
Shares of Mahindra Finance concluded trading 5.47 per cent lower at Rs 263.60 apiece on the Bombay Stock Exchange (BSE).
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