Shares of Hero MotoCorp witnessed tanked over 4% on Tuesday, following media reports on the Enforcement Directorate (ED) conducting raids at the residence of Hero MotoCorp Chairman Pawan Munjal. The raid was initiated after the ED took cognizance of a Directorate of Revenue Intelligence (DRI) case
Hero MotoCorp share price fell over 4% to hit an intraday high of Rs 3,032.25 on NSE, following the news of the ED raid. The scrip is still up 13% year-to-date (YTD). The DRI had recently apprehended a close aide of Pawan Munjal in possession of undeclared foreign currency
Pawan Munjal led Hero Motocorp's global expansion after Hero broke up with Honda in 2011. He also holds executive positions in industry bodies- Confederation of Indian Industry (CII) and the Society Indian Automobile Manufacturers (SIAM). Officials told news agency PTI that the raids against Munjal are part of a money laundering probe
Continue viewing BT Visual Story
Catch the latest business news, share market updates, expert analysis and exclusives only on BTTV.in
The development came after Hero MotoCorp had in an exchange filing on June 17 said that it had received a communication from the Ministry of Corporate Affairs (MCA) seeking certain information from the company. Hero MotoCorp had then said that it would provide the information, as sought by the MCA
The investigation was launched by the MCA after taking cognizance of an earlier probe conducted by the Income Tax department into certain transactions of Hero Motocorp. According to a Reuters report, the MCA will assess the company's relationship with a third-party vendor in a case related to alleged diversion of funds, and will also examine its ownership structure
Earlier, the Income Tax department in March last year collected evidence that revealed that Hero MotoCorp has booked bogus purchases, made huge unaccounted cash expenditures, and obtained accommodation entries, aggregating to the tune of more than Rs 1,000 crore, as per reports
Earlier this year, the Income Tax department carried out raids at Hero Motocorp premises in Delhi-NCR. In March 2022, the Income Tax department conducted search operations across 25 premises including Hero Motocorp offices and at the chairman’s residence as part of an investigation into alleged tax evasion against the firm
In August 2018, Pawan Munjal, Chairman, Chief Executive Officer and Managing Director of Hero MotoCorp Limited, was deplaned at the Indira Gandhi International Airport (IGIA), New Delhi, after a person identified as Amit Bali was found to be carrying alleged foreign currency equivalent to Rs 81 lakh in his personal carry- in luggage which was found during the security check-in by CISF officials
Hero Motocorp became the world's largest two-wheeler manufacturer in 2001 in terms of unit volume sales in a calendar year. The two-wheeler manufacturer has maintained this title for two consecutive decades. The two-wheeler manufacturer has a presence in around 40 countries in Asia, Africa, and South and Central America
Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position