Mahindra Finance to delay Q4 results due to detected retail vehicle loan financial fraud

The fraud is related to retail vehicle loans disbursed by the company, involved forgery of documents resulting in the misappropriation of company funds.

The company also informed that due to the fraud, it has decided to defer the announcement of financial results for the fourth quarter and financial year ended March 31, 2024. This includes the recommendation of dividend, Annual General meeting and related matters that were scheduled for consideration at the Board meeting on April 23, 2024.

But the Audit Committee and Board Meeting will still address other scheduled matters, such as the increase in aggregate borrowing limits and fund raise via issue of Non-convertible debentures.

The company has also informed that investigations into the fraud are at an advanced stage, with an estimated financial impact of the fraud not expected to exceed Rs. 150 Crores. Necessary corrective actions have been identified and are in the process of implementation, including the arrest of individuals involved.

"The Company estimates that the financial impact of this fraud is unlikely to exceed Rs.150 Crores. Investigations are underway, and necessary corrective actions have been identified and are at various stages of implementation, including arrest of few persons involved" the release further added.

The shares of Mahindra & closed with a decline of 1.20 per cent at Rs 279 on Monday trading session. (ANI)