Maruti Suzuki India is probing allegations of fraud and wrongdoing by some company executives in its purchase department, a report by The Economic Times said. It is being done based on a complaint filed by a whistleblower.
“After a thorough investigation, the company will take strict action if required,” a person aware of developments told ET. “The Japanese parent of the company is ruthless in dealing with anything related to irregularities in financials, as it is a serious corporate governance issue,” the person added.
KPMG has been tasked with carrying out a forensic investigation. The company has taken possession of the laptops and phones of the executives under the lens but no official has yet been suspended.
The investigation has been reportedly going on for two-three months.
The allegations against the officials include that some of the component supplies were made available to the company at higher prices than expected market quotations. This led to the vendors getting benefits worth “crores of rupees”, the report said.
This comes as the company is trying to reduce input costs and has announced a second rate hike in one year.
In early January, the company said it has hiked the prices of its vehicles across models by about 1.1 per cent. It was the second price hike that the carmaker was undertaking in the ongoing fiscal year, after increasing it in April 2022.
In December last year, the company said it would hike the prices of its vehicles to offset the impact of rising input costs and make provisions to update the model range to conform to stricter emission norms which will kick in from April 2023.
“An estimated weighted average of increase across models stands at around 1.1 per cent. This indicative figure is calculated using ex-showroom prices of models in Delhi and will come into effect from January 16, 2023,” Maruti Suzuki India said in a regulatory filing.