Muthoot Finance Files FIR Against CEO, Ex-Employee Over Rs 11.92 Cr Reward Misappropriation

Muthoot Finance’s wholly owned subsidiary, Muthoot Insurance Brokers, has filed an FIR against its suspended CEO, Thomas P Rajan and former chief general manager-business performance (South), Ranjit Kumar Ramachandran. The company has accused that the two of being involved in misappropriation of employee rewards between April 2023 and November 2024. In an exchange filing on March 12, the parent company mentioned that the misappropriated reward amounted to Rs 11.92 crores. 

“Misappropriation of rewards in the form of gift cards received from insurance companies meant for distribution to employees from April 2023 to November 2024,” said the company in an exchange filing.

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The alleged fraud by the suspended CEO and former employee has not resulted in any financial implication for Muthoot Finance, but the company highlighted that the notional loss of revenue amounted to Rs 31.28 crores. 

“No financial impact on Muthoot Finance...However the notional loss of revenue is Rs 31.28 crores based on the estimated additional business generated had the misappropriated rewards were distributed to employees,” the statement added. 

Recently, Muthoot Finance recorded a 21% rise in consolidated PAT in the third quarter of the financial year 2024-25 at Rs 1,392 crore compared to Rs 1,145 crore in Q3 FY24. The insurance company’s interest income grew to Rs 5,067.3 crore in Q3 FY25 compared to Rs 3,683.1 crore in Q3 FY24. 

Apart from profit increase, the insurance company has recently received Reserve Bank of India's nod to open 115 new branches, and the central bank asked them to make necessary arrangements for security and for storage of gold jewellery including, safe deposit vault. 

“...It is advised that you have been granted permission for opening of 115 new branches as requested and the company is also advised to ensure suitable arrangements for security and for the storage of gold jewellry,” RBI said in a statement.