M&M Financial Services was directed by RBI to immediately stop carrying out any recovery or repossession activity through outsourcing arrangements till further orders. However, it has allowed the NBFC to carry out recovery or repossession activities, through its own employees.
This comes on the back of very disturbing news that during a repossession of a tractor in Hazaribagh, Jharkhand, a recovery agent of the NBFC had gotten into an altercation with the borrower's family and she was allegedly crushed to death under the wheels of the tractor.
The police is currently investigating the matter, after registering a case of murder against four individuals.
Following this news, M&M Financial fell almost 14.5% to hit an intraday low at Rs.192.05, not too far from its 15% LC of the day at Rs.190.20.