New Delhi: Mahindra & Mahindra Financial Services recently disclosed a fraud amounting to Rs 150 crore in its retail vehicle loan division, involving the falsification of Know Your Customer (KYC) documents at one of its branches in the North East region. The company has postponed the announcement of its Q4 results until May 30, following the detection of this fraud in the fiscal year ending March 2024.
The fraudulent activity was uncovered towards the end of the fourth quarter of FY24, with investigations ongoing. Mahindra Finance reassured that the financial impact of the fraud is anticipated to remain within Rs 150 crore. Corrective measures are being implemented, including the identification and apprehension of individuals involved.
As a consequence of this development, the board meeting scheduled for April 23, 2024, to approve the audited standalone and consolidated financial results for Q4 and the fiscal year, as well as matters related to dividend, Annual General Meeting (AGM), and others, has been postponed. A new date for the meeting will be announced in due course.
Mahindra Finance’s board will convene on May 30, 2024, to deliberate on the financial results for the period ending March 2024. On the day of the disclosure, the company’s stock witnessed a decline of 5.47%, closing at Rs 263.6 per share.
