ED raids the house of Pawan Munjal, owner of Hero MotoCorp. Earlier, DRI had caught a close associate of Pawan Munjal at the airport with a huge amount of foreign currency. Let us tell you that in 2022, the Income Tax Department has also raided the places of the company chairman.

ED raids the house of Pawan Munjal

The Enforcement Directorate (ED) raids the house of Hero MotoCorp owner Pawan Munjal in a money laundering case. ED is searching Munjal’s house in Delhi. The case in which the ED is searching Munjal’s house is based on a case filed by the Directorate of Revenue Intelligence.

Earlier, DRI had caught a close associate of Pawan Munjal at the airport with a huge amount of foreign currency. Last year, the Income Tax Department had conducted searches at 25 premises linked to Hero MotoCorp as part of its tax evasion probe against the company. 

In fact, the Income Tax Department has raided the premises of Hero MotoCorp Chairman and MD Pawan Munjal in 2022 as well. 

Then there were allegations against Munjal that he had shown bogus expenses in his accounts. It was told that in the suspicious expenses found by the IT team, some inhouse companies are also there, then apart from Pawan Munjal’s house and office, the premises belonging to some other big officials of the company were also raided simultaneously.

There was a boom as soon as the news of the raid was received

Then as soon as the news of the raid came to the fore, the shares of Hero MotoCorp also started falling. Hero MotoCorp’s stock was trading profitably on BSE before the raids came to the fore. The stock had lost all momentum as soon as it got a whiff.

Hero dominates the domestic two-wheeler market

Unveiling Financial Irregularities in Money Laundering Probe

The Enforcement Directorate (ED) takes decisive action as it conducts raids at the residence of Pawan Munjal, the esteemed owner of Hero MotoCorp, in connection with a high-profile money laundering case. This investigation has brought significant attention and scrutiny to the affairs of the prominent business figure.

DRI’s Earlier Catch Raises Suspicion

In a prior incident, the Directorate of Revenue Intelligence (DRI) had made a noteworthy discovery when a close associate of Pawan Munjal was caught at the airport carrying a substantial amount of foreign currency. This led to further inquiries and intensified the scrutiny on the financial dealings of the individuals involved.

2022: The Year of Intense Scrutiny

Notably, the Income Tax Department had also been active in 2022, conducting raids at various premises associated with Hero MotoCorp. These extensive searches were part of a robust tax evasion probe aimed at the company and its operations.

Company Chairman under the Scanner

Adding to the gravity of the situation, the Income Tax Department had previously raided the premises of Hero MotoCorp Chairman and MD, Pawan Munjal, in 2022. Allegations had surfaced, suggesting that Munjal had recorded bogus expenses in his accounts, prompting further investigation into the matter.

Simultaneous Raids at Various Locations

Apart from Pawan Munjal’s house and office, the Income Tax Department also targeted the premises belonging to other prominent officials within the company. The investigation delved into suspicious expenses involving in-house companies, revealing a complex web of financial intricacies.

Market Impact: Shares Plummet

The news of the ED raid sent shockwaves across the market, causing a sharp decline in the shares of Hero MotoCorp. Prior to the raid, the company’s stock had been trading profitably on BSE. However, the sudden revelation led to a loss of momentum and investor confidence.

Hero MotoCorp: A Dominant Force in the Two-Wheeler Market

Under Pawan Munjal’s adept leadership, Hero MotoCorp has emerged as a dominant force in the domestic two-wheeler market. The company’s operations span across 40 countries in Asia, Africa, South America, and Central America.

Global Presence with 8 Benchmark Manufacturing Plants

Hero MotoCorp boasts a global presence with eight manufacturing plants that adhere to international benchmarks of excellence. Of these, six are strategically located in India, while Colombia and Bangladesh each host one.

Commanding Over 50 Percent Market Share

In India, Hero MotoCorp reigns supreme with a commanding share of over 50 percent in the domestic motorcycle market. The company’s relentless pursuit of innovation and customer-centric approach has earned it a coveted position in the hearts of consumers.