 "Muthoot insurance arm's CEO, ex-executive accused of ₹12 cr gift card fraud")
Muthoot Insurance Brokers Pvt Ltd, a subsidiary of Muthoot Finance Ltd, has uncovered a ₹11.92 crore fraud involving its now-suspended CEO and a former executive of the parent company. The duo allegedly misappropriated gift cards meant as incentives for employees, diverting them for personal gain. The fraudulent scheme, which took place between April 2023 and November 2024, resulted in a notional revenue loss of ₹31.28 crore, the company said in an exchange filing late Wednesday.
Details of alleged Muthoot gift card fraud
On Tuesday, local media in Kerala reported that high-level executives had been accused of misappropriation. According to a report in Kerala Kaumudi, the misappropriation involved rewards issued by insurance companies in the form of gift coupons, typically valued at ₹10 lakh each, which were meant to be distributed to top-performing employees. Instead, the accused are suspected of forging documents and diverting the funds, reportedly taking cash after making minimal transactions with shopkeepers.
Muthoot Insurance Brokers clarified in a regulatory filing that while there is no direct financial impact on the company, the fraud led to significant losses in potential business.
Investigation and legal action
Discrepancies in the issuance of gift coupons between November 2023 and 2024 led to the fraud being uncovered. Following an internal probe, the company filed a complaint with the Ernakulam South Police, resulting in an FIR against the accused. Both individuals have since approached the court seeking anticipatory bail.
The case remains under police investigation as authorities work to determine further legal action.