Hero MotoCorp confirms ED visit at Pawan Munjal’s residence, Stock takes Major Hit
Ten News Network
2nd August 2023: On August 1, Hero MotoCorp confirmed a “visit by Enforcement Directorate (ED) officials” to the company’s chairman Pawan Munjal’s residence.
According to a regulatory filing, ED officers also visited the company’s offices in Delhi and Gurugram.
Hera MotoCorp informed the stock exchanges, “Officials from the Enforcement Directorate today visited two of our offices in Delhi and Gurugram and the residence of our Executive Chairman Dr Pawan Munjal. We continue to extend all cooperation to the agency.”
Following the revelation of ED action against the company, the company’s shares fell the most in over a year during intraday trade. The raid was launched in response to a Directorate of Revenue Intelligence (DRI) case.
According to CNBC TV-18, the searches were conducted at the sites in Delhi and adjoining Gurugram in compliance with the terms of the Prevention of Money Laundering Act (PMLA).
The probe arises from a DRI report about a person who was supposedly close to Munjal and was being investigated for having undeclared foreign money.
Following the announcement of the ED raid, Hero MotoCorp shares fell more than 4%, trading at a year low of Rs 3,064. The stock closed at Rs 3,103 per share on the BSE at the end of market hours, down 3.14 percent from the previous day.
Previously, the Income-Tax Department raided Munjal and Hero Motocorp in March 2022 as part of a tax evasion probe. According to Reuters, the Ministry of Corporate Affairs initiated an investigation in June this year to investigate the company’s involvement with a third-party vendor in a case involving alleged fund diversion.
