Mahindra Finance discovers Fraud worth Rs.150 Crore in Retail Vehicle Loan Portfolio

Mahindra Finance said on Tuesday that it discovered around Rs.150 crore in fraud in its retail vehicle loan portfolio at one of its locations and postponed its board meeting to confirm the financial results for 2023-24.

The Mahindra & Mahindra Financial Services board was expected to meet on Tuesday to approve the March quarter and financial year 2023-24 results. In a regulatory filing, the company stated that the new date for the board meeting would be announced later.

Mahindra Finance stated that fraud was discovered at one of the company’s locations in the northeast near the end of the fourth quarter of its financial year ending March 31, 2024.

“In the case of retail vehicle loans disbursed by the company, the fraud involved forgery of KYC documents, which resulted in misappropriation of company funds. The investigation into the matter is continued. The company expects that the financial impact of this fraud will not exceed Rs.150 crore,” Mahindra Finance stated.

Investigations are ongoing, and appropriate corrective measures have been noted and are in various stages of implementation, including the arrest of a few people involved the statement said.

Mahindra Finance’s shares closed 5.47% lower at Rs 263.60 per on the BSE.