ED raids Hero Motocorp's Pawan Munjal's homes in Delhi, Gurugram
What's the story
The Enforcement Directorate (ED) has raided the homes of Hero Motocorp's Executive Chairman Pawan Munjal as part of an investigation into money laundering. The ED carried out raids at his premises located in Delhi and Gurugram. This action was prompted by information from the Department of Revenue Intelligence, which had earlier caught a close aide of Munjal carrying undeclared foreign currency at the airport.
Previous raid
The IT Department had raided Munjal and Hero earlier
Back in March 2022, the Income Tax Department had raided Munjal and Hero Motocorp due to suspicions of tax evasion. This latest money laundering investigation adds to the growing list of incidents involving Munjal and his automobile company. The searches were carried out as per the provisions of the Prevention of Money Laundering Act (PMLA).
Shares
Hero Motocorp shares plummet amid scandal
This recent raid and ongoing investigation could significantly impact Hero Motocorp's operations, financial performance, and industry reputation. The company's shares fell by over 3% after the news broke. It has recovered a bit since then. Hero Motocorp is also facing an investigation by the Ministry of Corporate Affairs over alleged corporate governance issues, including floating shell companies.