Hero MotoCorp today confirmed that the Enforcement Directorate(ED) has raided company’s chairman and Chief Executive Officer (CEO) Pawan Munjal’s residence and other locations linked to him in Gurugram. Earlier in the day, it was reported that the investigative agency had raided Munjal’s residence after it took cognisance of a Directorate of Revenue Intelligence (DRI) case. The DRI recently apprehended one of Munjal’s close aides in possession of undeclared foreign currency.
In an official statement, Hero Motocorp confirmed ED’s visit to two offices in Delhi and Gurugram. “Officials from the Enforcement Directorate today visited two of our offices in Delhi and Gurugram and the residence of our Executive Chairman Dr Pawan Munjal. We continue to extend all cooperation to the agency,” the company said in a statement.
The searches were carried out at premises located in Delhi and neighbouring Gurugram in accordance with provisions of the Prevention of Money Laundering Act (PMLA). The investigation stems from a DRI complaint against a person, allegedly close to Munjal, who was investigated on charges of carrying undeclared foreign currency.
Various financial documents were found and taken for further investigation, along with electronic and digital data. The company had stated that these were routine searches that usually take place before a financial year.
The company, which is India’s largest manufacturer of motorcycles, had previously been under the scrutiny of Income Tax authorities last year, which the company had termed a “routine inquiry.”
The news of the ED raid led to a significant drop in Hero MotoCorp’s share price, which fell over 4 per cent to hit an intraday high of Rs 3,032.25 on NSE. Despite this, the scrip is still up 13 per cent year-to-date (YTD).
Hero MotoCorp became the world’s largest two-wheeler manufacturer in 2001, in terms of unit volume sales in a calendar year, and has maintained the title for the past 20 consecutive years. The company has presence across 40 countries spanning Asia, Africa, and South and Central America.
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