Muthoot Insurance Brokers Pvt Ltd, a subsidiary of Muthoot Finance Ltd, discovered a ₹11.92 crore fraud involving their now-suspended CEO and a former executive from the parent company. Gift cards meant as employee incentives were purportedly stolen by the two and used for their own benefit. The company said in an exchange filing late Wednesday that the fraudulent scheme, which took place between April 2023 and November 2024, caused a notional revenue loss of ₹31.28 crore.

Details regarding the alleged Muthoot gift card fraud

On Tuesday, local media in Kerala reported that high-ranking 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. These coupons were meant to be distributed to top performing employees. Instead, the accused are suspected of forging documents and diverting funds, allegedly taking cash after making only minor transactions with shopkeepers.

Muthoot Insurance Brokers clarified in a regulatory filing that, while the company suffered no direct financial consequences, the fraud resulted in 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 discovered. After conducting an internal investigation, the business complained to the Ernakulam South Police, which led to the accused being charged with a felony. Both individuals have since approached the court to request anticipatory bail.

The case is still being investigated by police as authorities determine what legal action to take next.