I-T dept conducts search operations at Hero MotoCorp premises, Pawan Munjal's home

In a statement after the searches, Hero MotoCorp said: “Officials from the Income Tax department visited two of our offices in Delhi and Gurugram and the residence of our chairman and chief executive Pawan Munjal on Wednesday. We have been informed that this is a routine inquiry, which is not uncommon before the end of the financial year."

"We reassure all our stakeholders that it continues to be business as usual. We at Hero MotoCorp are an ethical and law-abiding corporate, and maintain the highest standards of impeccable corporate governance. In keeping with this philosophy, we are extending our full cooperation to the authorities,” the company said.

After the news broke, Hero MotoCorp share price slipped 4 percent intraday. On BSE, the company's stock opened the day at Rs 2,426.15 and was trading at around Rs 2,385.55 around 1 pm. The stock hit a low of Rs 2,340 around 10 am. The stock ended the day at Rs 2,395.40, down 1.07 percent on BSE.

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. To date, it has sold over 100 million units across domestic and international markets.