homemarket Newsstocks NewsM&M Finance tanks 9% after RBI orders to stop using third party recovery agents
M&M Finance tanks 9% after RBI orders to stop using third party recovery agents
The RBI action comes after a 27-year-old pregnant woman was crushed to death under the wheels of a tractor being forcibly driven away by the recovery agent of MMFSL in Hazaribagh district of Jharkhand.
Shares of Mahindra and Mahindra Financial Services fell over 9 percent on Friday, a day after the Reserve Bank of India (RBI) said it has directed the company to immediately stop any recovery or repossession operations through outsourcing arrangements, till further orders.
At 9:32 am shares of M&M Financial Services were trading at Rs 202, a decline of 9 percent from the previous close on the BSE.
In its order, the RBI also mentioned that the non-banking finance company may continue with recovery or repossession activities through its own employees.
"This action is based on certain material supervisory concerns observed in the said NBFC, with regard to the management of its outsourcing activities," RBI said in a statement.
The RBI action comes after a 27-year-old pregnant woman was allegedly crushed to death under the wheels of a tractor being forcibly driven away by the recovery agent of MMFSL in Hazaribagh district of Jharkhand.
The victim, the daughter of a differently-abled farmer Mithilesh Mehta of Bariyanath under Ichak Police Station, was three months pregnant.
Superintendent of Police Manoj Ratan Chothe said a case of murder has been registered against four persons, including the recovery agent and manager of the private finance company.
A special investigation team headed by the DSP (HQ) Rajeev Kumar was formed to arrest those involved, the SP said.
First Published: Sept 23, 2022 10:20 AM IST
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