Servotech says two employees have been arrested in a suspected internal fraud of ₹2–2.5 crore

Servotech Renewable Power System Limited has told the exchanges that Mr. Gagandeep Rajora and Mr. Vijay Kumar have been arrested in connection with a suspected internal fraud. The company first reported the fraud, which it says involved two of its employees and an external party, on 23 Jul 2026. The update was filed on 14 Oct 2026 under Regulation 30 of the SEBI listing rules.

The company says the investigating authorities are still trying to trace the other people involved. The estimated amount in the suspected fraud is unchanged at about ₹2.00–2.50 crore, and it may be revised depending on what the investigation finds. The investigating officer has recovered goods and cheques worth about ₹75.65 lakh in total.

The company says the final impact on it and its financial position cannot yet be determined and will be assessed when the investigation is completed. It has appointed an independent forensic auditor to review the matter and the adequacy of its internal controls, and it has strengthened its internal processes and approval mechanisms for financial and commercial transactions.

Inference

The amount involved, about ₹2–2.5 crore, is an estimate, and the recoveries of about ₹75.65 lakh are about 38% of its lower end. The filing says the final loss cannot be fixed until the investigation ends.

The forensic review will look at whether the company’s controls were adequate, but its findings are not yet available. The company says it will continue to report material developments.