Hero MotoCorp's executive chairman Pawan Munjal and some others have been raided. The raids were conducted at premises located in Delhi and Gurugram under the provisions of the Prevention of Money Laundering Act (PMLA).
New Delhi: The Enforcement Directorate (ED) has taken major action against Pawan Munjal, executive chairman of Hero MotoCorp, a well-known two-wheeler maker. ED has raided Pawan Munjal’s house and different offices. The raids have been conducted under the provisions of the Prevention of Money Laundering Act (PMLA). According to sources Enforcement Directorate has registered a case against the Chairman and CEO of Hero MotoCorp.
The ED took this action after receiving inputs from the Department of Revenue Intelligence case. A close aide of Pawan Munjal was also caught by the DRI at the airport with a huge amount of undisclosed foreign currency. Meanwhile, Hero MotoCorp’s shares crashed. On the second trading day of the week, the company’s shares fell by almost 5 per cent to Rs 3032.10. Let us inform that today the stock had also touched the highest level of 52 weeks. The highest level of the stock is Rs 3242.85.
Earlier, sources reported in June that the Ministry of Corporate Affairs (MCA) has ordered an inquiry against Hero MotoCorp Ltd over alleged corporate governance issues. According to the report, Hero MotoCorp has been accused of allegedly running shell companies. The investigation by the Registrar of Companies also concluded that the affairs of the company and its associated entities required a thorough probe.
He is the executive chairman and whole-time director of Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters. Hero MotoCorp, led by Pawan Munjal, won the title of the world’s largest two-wheeler manufacturer in 2001 and has been the country’s leading company for 22 consecutive years.
Hero MotoCorp currently sells its products in over 47 countries across Asia, Africa, Latin America and the Middle East. The company has eight manufacturing facilities. Of these, six are located in India and one each in Colombia and Bangladesh.