Servotech Detects Internal Fraud Involving Inventory Removal and Invoice Forgery; Investigation Underway
Servotech Renewable Power System Limited has confirmed the detection of an internal fraud involving its inventory, which also included forgery of company tax invoices. The incident involves two employees in collusion with an external entity, leading the company to initiate criminal action.Management at Servotech stated that the preliminary findings indicate the fraud was carried out over a period of time through the unauthorized removal of the company's physical inventory and the forging of company tax invoices using genuine transaction data.
The individuals identified as involved in the fraud are Mr. Gagandeep Rajora, Head of Supply Chain Management, and Mr. Vijay Kumar, Manager of Production Planning & Control. The company reports that these employees colluded with an external entity, M/s Shri Shyam Industries.
Estimated Impact and Response
Based on preliminary internal reconciliation, Servotech estimates the impact of the fraud to be approximately Rs 2 crore to Rs 2.5 crores. Since the investigation is ongoing, it remains difficult to estimate a precise time frame for the incident, noting that it occurred over a period of time.In response to the detection of the malpractice, the company has registered an FIR (FIR No- 429/2026) with Police Station Kundli, District Sonipat, Haryana.
Servotech is actively responding to the situation and is in the process of appointing a professional forensic auditor to determine the final quantum of the loss. The company remains committed to maintaining high standards of corporate governance and will provide further updates as any material developments occur.
The following table details key aspects of the fraud investigation:
| Particulars | Details |
|---|---|
| Nature of Fraud | Forgery of company tax invoices (using genuine transaction data) and unauthorized removal of physical inventory. |
| Estimated Impact on Entity | Approximately Rs 2 crore to Rs 2.5 crores, pending forensic audit. |
| Personnel Involved | Mr. Gagandeep Rajora (Head - Supply Chain Management) and Mr. Vijay Kumar (Manager - Production Planning & Control). |
| External Party | M/s Shri Shyam Industries. |
| Law Enforcement Action | FIR No- 429/2026 registered with Police Station Kundli, District Sonipat, Haryana. |
SERVOTECH Stock Price Movement
Shares of Servotech Renewable Power System Limited today slipped by 2.53%, settling at ₹97.31 in post-market trading. The stock saw a volume of 930,474 shares during the day's session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.