Servotech Renewable Power System Ltd has reported an alleged internal financial fraud estimated between ₹2 crore and ₹2.50 crore, resulting in the arrest of two company employees. Preliminary inquiries indicate that the suspects allegedly colluded with external parties to manipulate tax invoices and remove company inventory without proper authorization. Law enforcement authorities have already seized goods and cheques valued at ₹75.65 lakh from the detained staff members as part of the initial proceedings.
Police Recover Cheques and Inventory Worth ₹75.65 Lakh
Following the arrests, investigators secured goods and bank cheques worth ₹75.65 lakh from the possession of the two employees. While police consider this recovery an important breakthrough in the case, company officials noted that the seized assets do not reflect the full scale of the financial damage incurred.
Detectives are currently reviewing the retrieved merchandise, financial instruments, and corresponding transaction records to establish the precise scope of the alleged misconduct. A central focus of the continuing inquiry involves verifying the total volume of inventory taken from company premises, tracing the external networks used to move or sell the materials, and assessing the direct balance-sheet effect of the falsified tax documents.
Independent Forensic Auditor Appointed to Quantify Losses
To establish the exact magnitude of the fraud, Servotech has engaged an independent forensic auditor to carry out a comprehensive probe across its operational records. The auditor will review accounting ledgers, historical tax filings, dispatch documentation, and related commercial dealings to determine how the unauthorized activities took place.
The forensic examination is designed to uncover the operational vulnerabilities within the company’s internal control and tracking mechanisms that allowed the transactions to bypass detection. Beyond identifying questionable entries and tracking third-party involvement, the audit findings are expected to provide the firm with an authoritative assessment of its actual financial losses and support further legal steps.
Regulatory Disclosure Filed with National Stock Exchange
In compliance with statutory corporate governance norms, Servotech has notified the National Stock Exchange of India regarding the police action and the ongoing investigation. The formal disclosure was submitted under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, which mandates that publicly traded entities promptly inform market participants of material developments.
The company stated that while two workers are in custody and initial recoveries have been made, the broader timeline of the fraudulent activity and the final monetary impact remain subject to the results of both the police inquiry and the forensic review. Management indicated that future disclosures and operational decisions will depend on the final evidence assembled by the forensic team and law enforcement agencies.
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