ED Conducts Raids Against Hero Motocorp Chairman Pawan Munjal In Money Laundering Probe

The ED on Tuesday conducted raids against Hero Motocorp Executive Chairman Pawan Munjal and some others as part of a money laundering probe, officials said, according to PTI.

ED conducts raids against Hero Motocorp Executive Chairman Pawan Munjal and some others as part of money laundering probe, say officials

— Press Trust of India (@PTI_News) August 1, 2023

Shares of Hero MotoCorp witnessed a sharp fall of over 4 per cent Tuesday following the ED raids at the residence of Pawan Munjal. The raid was initiated after the ED took cognisance of a Directorate of Revenue Intelligence (DRI) case. Earlier, the DRI had apprehended a close aide of Pawan Munjal in possession of undeclared foreign currency.

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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 Income Tax (I-T) Department in March last year raided Munjal and his company Hero Motorcorp, the country's largest two-wheeler automobiles manufacturer, as part of a tax evasion investigation.  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. 

In June, the Ministry of Corporate Affairs (MCA) has initiated an investigation into Hero MotoCorp's association with a third-party vendor, reported Reuters citing two government sources. According to the report the case involves allegations of fund diversion. Sources told the news agency that the probe has been ordered in the "public interest" to audit the ownership structure of Hero MotoCorp and whether it controlled the third-party vendor.

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