Mahindra & Mahindra Financial Services Ltd has postponed the board meeting that was scheduled for Tuesday to review and approve the financial results for Q4FY24. This delay comes as a result of a vehicle loan fraud amounting to Rs 150 crore that the company faced. The Non-Banking Finance Company (NBFC) detected the fraud in one of its branches in the North East during Q4FY24. The fraud involved forging KYC documents related to retail vehicle loans, leading to an embezzlement of company funds.

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As a consequence, the stock price fell by 4.57% at Rs 266.1 per share on BSE. However, it is reported that the estimated impact of this fraud will not exceed Rs 150 crore and necessary corrective actions have been identified and are currently being implemented. Some individuals involved in this fraudulent activity have already been arrested.

Due to these developments, the agenda items for the board meeting including approval of audited standalone and consolidated financial results, as well as dividend recommendations, will be deferred to a later date which will be communicated in due course.

The NBFC has also reported this matter to Reserve Bank of India’s central fraud monitoring cell along with providing updates on their progress with investigating this incident and taking appropriate legal action against those responsible for the fraud.