Muthoot Insurance Brokers Pvt., a wholly owned subsidiary of Muthoot Finance Ltd., has reported a case of fraud involving its suspended CEO and a former employee of the parent company.
According to a stock exchange filing made late on March 12, CEO Thomas P Rajan and Ranjit Kumar Ramachandran, the former chief general manager of business performance (South) at Muthoot Finance, were implicated in the misappropriation of employee reward incentives.
The fraudulent activity involved the diversion of gift cards, intended as performance rewards for employees who contributed to generating business. The total misappropriated amount stands at Rs 11.92 crore, covering the period between April 2023 and November 2024.
While the company stated that there was "no accounting loss" to Muthoot Insurance Brokers since the funds were designated as employee rewards, it highlighted a notional revenue loss of Rs 31.28 crore. This figure reflects the potential additional business that could have been generated had the rewards been distributed appropriately, the company said in its filing.
Muthoot Insurance Brokers has filed a First Information Report (FIR) following the discovery of the fraud.
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