New Delhi: In a significant development, the Enforcement Directorate (ED) carried out raids at the residence of Pawan Munjal, the Chairman of Hero MotoCorp, on Tuesday. The raids are part of an ongoing money laundering investigation, and they were conducted at locations in Delhi and Gurugram, adhering to the provisions of the Prevention of Money Laundering Act (PMLA).
The investigation was initiated following a complaint filed by the Directorate of Revenue Intelligence (DRI) against an individual allegedly connected to Pawan Munjal. This person was being probed for carrying undeclared foreign currency, which raised concerns and led to the subsequent enforcement action.
The news of the ED raids has had an impact on the stock market, with shares of Hero MotoCorp witnessing a decline in Tuesday’s trade. The company’s stock fell by 5.34 percent, reaching a low of ₹3,032.10 on the Bombay Stock Exchange (BSE). Despite this setback, the scrip has still recorded a positive year-to-date growth of 13 percent.
Notably, this is not the first instance of authorities scrutinizing Hero MotoCorp. In March 2022, the Income Tax Department conducted searches at the offices of the company, suspecting tax evasion. As part of that operation, Pawan Munjal’s residence was also searched. However, the company is yet to issue an official statement in response to the latest developments.
Hero MotoCorp, a dominant player in the two-wheeler industry, achieved a milestone in 2001 by becoming the world’s largest two-wheeler manufacturer in terms of unit volume sales in a calendar year. Remarkably, it has retained this coveted title for the past 20 consecutive years. The company boasts a global presence, with operations spanning across 40 countries in Asia, Africa, and South and Central America.
As the investigation continues, the ED’s actions have drawn the attention of industry observers, investors, and stakeholders, with all eyes on any forthcoming statements or developments from Hero MotoCorp in response to the raids and the money laundering probe.