In late night communication on Thursday, Mahindra Finance The said it has a detailed policy for third party compliance with respect to possession of vehicles.
“In light of the recent tragic incident, we have stopped the third party possession and will further investigate whether and how third party agents will be used in future,” Ramesh Iyer, Vice President and Managing Director, Mahindra Finance said in the statement.
Following the death of a 27-year-old pregnant woman who was allegedly crushed to death under the wheels of a tractor by recovery agents last week in Jharkhand’s Hazaribagh district. reserve Bank of India On Thursday, MMFSL was barred from carrying out any recovery or capture activity through third party agents with immediate effect till further orders.
The RBI said that the non-banking finance company can continue the recovery or forfeiture activities through its employees.
This action is based on some of the material supervisory concerns observed in the above NBFC With regard to the management of its outsourcing activities, RBI said.
Police had arrested Roshan, an employee of Team Lease, a firm of Mahindra Finance, in connection with the woman’s death.
Mahindra Group CEO and Managing Director Anish Shah condoled the death and assured that the incident would be investigated from all angles.
with PTI input