Board Meeting Postponed After Fraud Worth Rs. 150 Crore Found at M&M Financial Services Branch
Mahindra & Mahindra Financial Services Ltd. has been entangled in a financial controversy after the discovery of a Rs. 150 crore scam at one of its North East offices. As a result, the business has rescheduled its planned board meeting, which was initially planned for today, until a later time, citing the need for further research and clarification.
Mahindra & Mahindra Financial Services made the news via a stock market filing, revealing that the board meeting that was scheduled to discuss the financial results for the quarter ending March 2024 would now be postponed. As the business works to deal with the fallout from the fraudulent behavior, the revised meeting date will be announced when it becomes available.
Mahindra Finance’s regulatory petition states that the fraud involves counterfeiting Know Your Customer (KYC) documentation pertaining to retail auto loans that were given by the company’s North East office. In the end, this counterfeit resulted in the theft of business cash. Stakeholders were informed by the corporation that inquiries into the situation are ongoing and progressing well.
Furthermore, Mahindra Finance said that the required remedial measures have been determined and are now undergoing different phases of execution. A few people who were purportedly complicit in the scam have been caught.
Owing to these developments, a number of agenda items have been rescheduled, including the recommendation of dividends and topics related to the Annual General Meeting (AGM) and the approval of audited standalone and consolidated financial statements for the fourth quarter and financial year ended March 31, 2024. The business has given stakeholders assurances that all other planned topics, such as discussions about generating funds via the issuing of non-convertible debentures and obtaining additional funds, would be handled by the Board and the Audit Committee.
The news of this discovery had an instant impact on the stock market, resulting in a dramatic decrease of over 3% in shares of Mahindra & Mahindra Financial Services, which were trading at Rs 270.10 per share as of 10:35 am on the National Stock Exchange (NSE). With its stock value rising by only 10% in the last year, the firm has suffered a major setback as a result of this slump.
Stakeholders are waiting for further information from Mahindra & Mahindra Financial Services on the scale of the fraud, how it affected financial performance, and the steps being taken to avoid such instances in the future as the investigation progresses and remedial measures are implemented.
