mahindra finance: Mahindra Finance stops repossessions via external agents

mahindra finance: Mahindra Finance stops repossessions via external agents

Mahindra & Mahindra Financial Services Ltd (MMFSL) has stopped using third party agents for default recoveries, following a directive from the Reserve Bank of India.

In a late night communication on Thursday, Mahindra Finance said it has a detailed third-party compliance policy regarding vehicle take backs.

“In light of the recent tragic incident, we have halted third-party repossessions and will continue to investigate whether and how outside agents will be used in the future,” said Ramesh Iyer, vice chairman and general manager of Mahindra Finance, in the statement. press release. pronunciation.

Following the death of a 27-year-old pregnant woman in Jharkhand’s Hazaribagh district, who was allegedly crushed under the wheels of a tractor by salvage officers last week, the RBI on Thursday barred MMFSL from conducting recovery or repossession activities through outside agents with immediate effect to further orders.

The RBI said the non-bank finance company may continue to conduct recovery or repossession activities through its own employees.

This action is based on certain material oversight issues observed in the said NBFC regarding the management of its outsourcing activities, the RBI added.

In connection with the woman’s death, police had arrested Roshan, an employee of Team Lease, a firm hired by Mahindra Finance.

Mahindra Group chief executive officer and managing director Anish Shah had pronounced the death and assured that the incident would be investigated from all aspects.

with PTI inputs

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