Hero MotoCorp announced today that the Enforcement Directorate (ED) raided the company’s chairman and Chief Executive Officer (CEO) Pawan Munjal’s residence and other places in Gurugram associated to him. Earlier in the day, it was reported that the agency had raided Munjal’s home after taking cognizance of a Directorate of Revenue Intelligence (DRI) investigation. The DRI recently caught one of Munjal’s close associates who was in possession of unreported foreign money.
Hero Motocorp confirmed ED’s visit to two offices in Delhi and Gurugram in an official statement. “Enforcement Directorate officials visited two of our offices in Delhi and Gurugram today, as well as the residence of our Executive Chairman, Dr Pawan Munjal.” “We continue to offer the agency our full cooperation,” the business said in a statement.
The searches were conducted at locations in Delhi and nearby Gurugram in compliance with the requirements of the Prevention of Money Laundering Act (PMLA). The probe arises from a DRI report about a person who was supposedly close to Munjal and was being investigated for having undeclared foreign money.
Hero MotoCorp
Various financial records, as well as electronic and digital data, were discovered and taken for further examination. According to the corporation, these were normal searches that occur prior to the start of a fiscal year.
The firm, India’s largest motorbike maker, was previously investigated by Income Tax authorities last year, which the company described as a “routine inquiry.”
The ED raid caused a huge reduction in Hero MotoCorp’s share price, which plunged more than 4% to an intraday high of Rs 3,032.25 on the NSE. Despite this, the stock is still up 13% year to date (YTD).
Hero MotoCorp became the world’s largest two-wheeler manufacturer in terms of unit volume sales in a calendar year in 2001, and has held the status for the past 20 years. The corporation has a presence in 40 countries across Asia, Africa, South and Central America, and the Caribbean.
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