M&M Finance discovers loan scam of Rs 150 crore
Mahindra Finance said on Tuesday that it has postponed its board meeting to ratify the financial results for 2023–24 after discovering around Rs 150 crore in fraud in its retail car loan portfolio in one of the company’s locations.
To ratify the financial results for the March quarter and 2023–24, the Mahindra & Mahindra Financial Services board planned to meet on Tuesday. The business said in a regulatory filing that it would provide a new date for the board meeting at a later time.
According to Mahindra Finance, a fraud was discovered in one of the company’s northeastern branches at the conclusion of the fourth quarter of the fiscal year that concluded on March 31, 2024.
“With regard to retail auto loans that the company disbursed, the fraud entailed the falsification of KYC documentation, resulting in the embezzlement of funds.” The case is being investigated at a high level. According to Mahindra Finance, “the company estimates that the financial impact of this fraud is unlikely to exceed Rs 150 crore.”
It further said that investigations are under progress and that the required remedial measures, including the arrest of some of the relevant parties, have been identified and are in different stages of execution.
