M&M FINANCE REPORTS A FRAUD WORTH UP TO ₹150 CRORE AT A BRANCH IN THE NORTH EAST

Mahindra & Mahindra Financial Services Ltd., the non-bank lender, informed the exchanges late on Monday that a fraud to the extent of ₹150 crore was detected at one of the company's branches in the North East region.

The fraud pertained to retail vehicle loans disbursed by the company and involved forgery of KYC documents, leading to embezzlement of company funds.

M&M Finance detected the fraud during the January-March quarter and the detection was followed by arrest of the few people involved in the fraud. The people involved included an area business manager and other employees of the concerned branch of the company in the North East.

The matter has also been reported to the Reserve Bank of India's central fraud monitoring cell. The company also said that investigations are already underway and are at an advanced stage. The necessary corrective action, identified by the company, is in various stages of implementation.

Mahindra & Mahindra Finance will be reporting its January-March quarter results later on Tuesday and it remains to be seen whether the said incident is accounted for in its earnings statements.

Shares of Mahindra & Mahindra Finance ended 1.2% lower on Monday at ₹279.75. Shares of the non-bank lender have had a subdued last 12 months, gaining close to 10% but underperforming most of its peers.

2024-04-22T23:45:35Z dg43tfdfdgfd