The Enforcement Directorate's searches at the offices of two-wheeler manufacturer Hero MotoCorp Ltd. and the residence of Executive Chairman Pawan Munjal have ended, people with knowledge of the matter told CNBC-TV18.
Hero MotoCorp, in a statement to the exchanges said that the Enforcement Directorate visited two of its offices in Delhi and Gurugram and the residence of Pawan Munjal. The statement said that the company is extending all possible cooperation to the agency.
CNBC-TV18 had reported earlier on Tuesday that the ED had raided Hero's offices and the Residence of Pawan Munjal. Sources further said that a Prevention of Money Laundering Act (PMLA) case has been registered against Munjal.
The ED took cognisance of the Department of Revenue Intelligence case, according to sources, who added that the DRI had caught a close aide of Pawan Munjal with undeclared foreign currency at the airport.
CNBC-TV18 had reported in June this year that the Ministry of Corporate Affairs had initiated an investigation against the two-wheeler manufacturer.
On June 17, Hero MotoCorp informed the exchanges that it has received a communication from the Ministry seeking certain information from the company and that it will provide the information as sought.
Earlier the income tax department in March last year collected evidences 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.
During March 23-26, the department carried out a search and seizure operation on various premises of Hero Motocorp as part of a tax evasion investigation. The raids were also conducted on offices and residential properties of the company’s Chairman and Managing Director Pawan Munjal.
For the month of July, Hero MotoCorp reported a 12 percent drop in overall sales when compared to July last year. Similarly, the company's domestic sales also declined 13 percent from last year.
After Tuesday's drop, the shares of Hero MotoCorp are trading 1.3 percent lower at Rs 3,061.25.
First Published: Aug 1, 2023 12:37 PM IST
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