The Enforcement Directorate (ED) has conducted new raids at the house of Pawan Munjal, the Chairman of Hero MotoCorp.
Pawan Munjal is the Chairman of Hero MotoCorp. He has been under the regulatory lens for a while. Now, the Enforcement Directorate (ED) has raided his residence and properties. The new raids are part of the ongoing investigation by ED into money laundering allegations against Mr Munjal. As a result, shares of Hero MotoCorp took a dip on Tuesday. The company’s stock went down by 5.34% (to Rs 3,032.10) on the Bombay Stock Exchange (BSE). It also showed a more than 7% intraday decline.
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Pawan Munjal’s Properties Raided as per Provisions of PMLA
The new raids were carried out as per the provisions of the Prevention of Money Laundering Act (PMLA). The ED swooped Mr Pawan Munjal’s properties in Delhi and Gurugram on Tuesday. This investigation was started after a complaint from the Directorate of Revenue Intelligence (DRI). The accused is said to be connected to the Pawan Munjal. Previously, they were investigated for carrying undeclared foreign currency.
Hero MotoCorp has denied all allegations. The company’s official statement called the new raids “routine inquiries” by the Income Tax (IT) Department. It added that such inquiries are common before the financial year-end. Hero MotoCorp claims that it is an ethical and law-abiding corporate entity. The two-wheeler manufacturer claims to have the highest standards of corporate governance. Despite the recent decline, the company’s scrip still shows a 13% year-to-date growth. It plans to offer new EVs in the Indian market, in partnership with Taiwanese two-wheeler maker Gogoro that will offer swappable battery solutions.
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Previous Raids and Allegations Against Hero MotoCorp Chairman Pawan Munjal
Previously, the Hero Motocorp chairman was subjected to raids by the Income Tax Department on allegations of tax evasion. In March 2022, the IT Department swooped various offices of Hero MotoCorp and raided Pawan Munjal’s residence. After the raids, the IT Department revealed that it discovered over Rs 1,000 crore in fake expenses and unaccounted cash expenditures. There were also violations under Section 269 SS of the Income Tax Act. Apparently, Rs 100 crore from Pawan Munjal’s alleged black money stash was used to pay for the farmhouse in Delhi.
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