On Tuesday, Hero MotoCorp, India’s leading two-wheeler manufacturer, revealed that officials from India’s financial crime fighting agency, the Enforcement Directorate, had conducted visits to two of the company’s offices in Delhi and Gurugram, as well as the residence of Chairman Pawan Munjal.
The Enforcement Directorate’s actions were prompted by a case filed by the Directorate of Revenue Intelligence (DRI) and a case registered under the Prevention of Money Laundering Act against Chairman Pawan Munjal, according to sources cited by CNBC-TV18.
This recent development follows an investigation initiated by the Ministry of Corporate Affairs in June, which aimed to assess Hero MotoCorp’s relationship with a third-party vendor in connection with alleged fund diversion.
As of now, neither Hero MotoCorp nor the Enforcement Directorate has provided a response to Reuters’ request for comments regarding the situation.
It is worth noting that last year, the company had come under scrutiny from India’s income tax authorities, which Hero MotoCorp had then referred to as a routine inquiry.
Following the news of the visits and investigations, the company’s shares closed lower by 3.2 per cent on Tuesday.
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