Affected by a car loan scam over Rs 150 crore, Mahindra & Mahindra Financial Services Ltd. has rescheduled its board meeting in order to examine and approve the Q4FY24 financial statements. Tuesday's meeting of the board was scheduled to discuss financial performance.
The Non-Banking Finance Company (NBFC) reported in a filing with the BSE that in Q4 of FY24, fraud was discovered at one of the company's branches in the Northeast. The crime entailed the falsification of KYC paperwork linked to loans for retail vehicles, which resulted in the misappropriation of corporate cash.
On the BSE, the stock was down 4.57% at Rs 266.1 a share.
The investigation into the situation has progressed. It is improbable that the fraud would have an effect on the corporation that is more than Rs 150 crore. According to the NBFC, the required remedial measures have been determined and are being carried out in phases, including the arrest of certain parties.
The agenda items that were supposed to be discussed at today's meeting—approval of the audited standalone and consolidated financial statements and the dividend recommendation - are being postponed in light of the development. Notification of the new date will be given in due time.
The central fraud monitoring unit of the Reserve Bank of India has been informed about the situation. After the scam was discovered, a couple of its participants were taken into custody.
