ED Carries Raids on Hero MotoCorp Chairman Pawan Munjal’s Residence
2 August, 2023 | Anamika Singh Parihar
Enforcement Directorate raids Hero MotoCorp chairman Pawan Munjal's residence, following PMLA provisions, in Delhi and Gurugram.
The Enforcement Directorate (ED) on August 1 carried out raids on the residence of Hero MotoCorp chairman Pawan Munjal. Official conducted the search operation on his Delhi and Gurugram premises according to the provision of the Prevention of Money Laundering Act (PMLA).
Any official statements from the company over the raids are yet to come out.
As per a number of media sources, the Ministry of Corporate Affairs (MCA) directed an investigation against Hero MotoCorp in June of this year due to concerns about the true beneficiaries of affiliated firms and an alleged violation of corporate governance standards.
Following input from the Department of Revenue Intelligence case, the ED took action. At the airport, the DRI also apprehended a close associate of Pawan Munjal who was carrying a sizable sum of unreported foreign currency.
The Income Tax Department searched Hero MotoCorp premises in March 2022 due to allegations of tax evasion. Additionally, the department searched Munjal’s home. Hero MotoCorp was contacted by HT for a response. When the company releases a statement, the copy will be updated.
The company’s shares fell by as much as 3% shortly following the news. At 1 pm on the BSE, shares of the company were down around $302.90 trading at 3.45%. Notably, the shares dropped after reaching a 52-week high price mark of Rs.3,242.85 on BSE today.
Hero MotoCorp is presently the largest two-wheeler automobile manufacturer in the nation. In the past 20 years, it has increased its global footprint. It currently exports its goods to 40 nations in South and Central America, Asia, and Africa.