The stock drops 2.75 percent as Delhi Police file a FIR against Pawan Munjal of Hero MotoCorp

 The stock drops 2.75 percent as Delhi Police file a FIR against Pawan Munjal of Hero MotoCorp

On October 9, CNBC-TV18 claimed that the Delhi Police had filed a complaint against Pawan Munjal, the executive chairman of Hero MotoCorp.

The stock is down 2.75 percent or 83.50 points from the day's opening price as of 12:26 p.m.

Tension is growing

According to official sources cited by PTI, the Enforcement Directorate (ED) searched locations in connection with a money laundering probe involving Munjal and others in August of this year.

The 69-year-old millionaire businessman's homes and offices in Delhi and the neighboring city of Gurugram were searched, along with places connected to some related organizations.

According to the sources, the ED launched these searches after filing a case against them in accordance with the PMLA's prohibitions against money laundering.

The business acknowledged the ED's visit to two offices in Delhi and Gurugram as well as the home of its executive chairman, Dr. Pawan Munjal, in a statement. The company's dedication to working with the organization was stressed in the statement.

These accusations

The Directorate of Revenue Intelligence (DRI), an investigative division of the Central Board of Indirect Taxes and Customs (CBIC), filed a complaint against Munjal, according to the article.

According to reports, the Central Industrial Security Force (CISF) provided the Customs officials with the information they needed to capture the executive.

On August 20, 2018, the CISF found foreign money totaling more than 81 lakh in the executive and Munjal's hand luggage as they went through security checks before boarding a British Airways aircraft to London from the Delhi international airport.

According to legislation governing foreign exchange management, Customs seized this money, and it's been claimed that the case's legal processes are still pending.

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The Income Tax Department raided the locations of Munjal and Hero MotorCorp in March 2022 as part of a probe into tax cheating. The tax officers reportedly discovered suspected illicit business costs totaling more than 800 crore rupees during these inspections, according to the Central Board of Direct Taxes, the administrative body for the I-T Department. Additionally, they discovered documents that showed the participation of certain shell firms and the usage of 60 crore in "unaccounted" funds for the acquisition of property in Delhi.

The automaker responded to these discoveries by claiming in a regulatory filing that it is a "law-abiding corporate, with effective internal financial controls" and emphasizing that its "financial statements are duly audited."

According to its website, Hero MotoCorp has held the distinction of biggest two-wheeler manufacturer in the world for the last 20 years based on unit volume sales in a calendar year from 2001.

The corporation has a substantial worldwide reach, with operations in 40 nations across Asia, Africa, South and Central America.

Hero MotoCorp states on its official website that "over the past 10 years, the company has grown quickly its capacity, geographic expansion, customer touchpoints, and R&D capabilities and established itself as a truly global brand."