Kajaria Ceramics uncovers INR20 crore fraud at Kerovit Global

Kajaria Ceramics Limited announced on December 27, 2025, the detection of a vendor fraud amounting to approximately INR20 crores within its subsidiary, Kerovit Global Pvt. Ltd. An employee with 8 years of tenure perpetrated the fraud, creating a fake vendor in their own name and forging management signatures to siphon funds. The misappropriation largely occurred over the last two years, with a significant increase in the past four to five months, predominantly in the current financial year.

The discrepancy was uncovered during "Operation Manthan," an internal review of systems and processes initiated in May 2025 as part of the company's "Kajaria 2.0" initiative. These funds were linked to the capital expenditure of a new sanitary plant, where the employee parked entries in Work in Progress (CWIP). While INR60 lakhs have been recovered, the company is not optimistic about recovering the full amount and has filed a police complaint.

The company is implementing more stringent systems, including a robust and automated vendor onboarding process for all subsidiaries, to prevent future occurrences. Kajaria Ceramics aims to complete the migration of existing vendors to this new portal across all subsidiaries within 2-3 months.