Hero Motocorp Shares continue declining after the raid on chairperson Pawan Munjal’s residence. ED conducted the charge because of allegations of money laundering by the business head.
PMLA ACT
The Prevention Of Money Laundering Act 2002 was formed to battle money laundering and tax evasion cases.
According to the Act, Government officials and Authorities have full power to seize any land or property bought from illegal money sources.
It Prevents turning Black Money into White.
Hero MotoCorp Raid
Hero Motocorp has been under investigation by the Income Tax Department on speculation of tax evasion since March 2022.
On August 1, 2023, Tuesday ED, The Enforcement Directorate, raided 12 locations in Delhi and Gurugram involving Hero Motocorp and also raided the residence of the company’s chairperson.
The raid resulted in the seizing of a total of ₹25 Crore assets.
The assets included Foreign Currency, Gold, Cash, Diamond Jewellery, Documents and Digital Evidence.
ED discovered that Pawan Munjal used SALT Enterprises Foreign Currency Sources for Personal Expenses.
SALT Enterprises also drew foreign exchange and used travel forex cards in the name of employees who had never travelled abroad. So, Mr Munjal misused company employees for personal gain.
“During the search operation, various incriminating documents and digital evidence were found and seized, indicating that the expenses ostensibly shown to have been claimed towards business purposes are not fully supported by evidence. Expenditure aggregating to more than Rs 800 crore has been booked in the guise of purchase of services from a specific event management entity.”
Surabhi Ahluwalia, official spokesperson for the Central Board of Direct Taxes
Hero MotoCorp Latest News
Hero MotoCorp is the largest Two Wheeler Automobile Manufacturer and Promoter in India.
Harley-Davidson X440’s online bookings close on August 3, and deliveries from October.
Hero MotoCorp will start production of the Harley-Davidson X440 at its Garden Factory in Rajasthan Neemrana in September, and shipments will begin next month.
Before the raid, the company was soaring on its 52-week-high with a share price of ₹3,242.85.
Hero Motocorp’s Share Value has increased 8% in the last year.
Hero MotoCorp Share Price
After the raid, the share price decreased from ₹3,156.95 to ₹2,965.05.
Read our news on How Adani turned his fate around and made a comeback. Something Mr Munjal Could learn from.
