Muthoot Finance's Insurance Arm Sees Fraud By CEO, Ex-Employee
Muthoot Insurance Brokers Pvt., a wholly owned subsidiary of Muthoot Finance Ltd., said it was impacted by a fraud committed by its chief executive officer presently under suspension and an ex-employee of the parent firm.
The fraud entailed the misappropriation of rewards in the form of gift cards received from insurance companies, meant for distribution to employees, the company said in a stock exchange filing late Wednesday.
CEO Thomas P Rajan and Ranjit Kumar Ramachandran, former chief general manager of business performance (South) at Muthoot Finance, are said to be involved in the fraud.
The amount of misappropriation is Rs 11.92 crore for the period from April 2023 to November 2024.
"There is no accounting loss to Muthoot Insurance Brokers as these amounts were meant for distribution to employees, who canvassed business, as rewards for their performance," the filing said. However, the notional loss of revenue is Rs 31.28 crore, based on the estimated additional business generated, had the misappropriated rewards been distributed to employees, it said.
An FIR has been registered based on the complaint filed by Muthoot Insurance Brokers.
Muthoot Finance is the largest gold loan NBFC in the country. It also offers additional services such as money transfer, digital, cashless, housing finance, vehicle loans, money transfer, mutual funds, and microfinance.
Muthoot Insurance Brokers is the insurance arm of the Muthoot Group. In fiscal 2024, the company had a turnover of Rs 13.88 crore and a profit of Rs 4.2 crore.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
-
Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.
-
Why Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities
With 274 million users and lowest-cost logistics, Meesho is defending its value commerce crown against giants like Amazon and Flipkart.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
