By India Today Business Desk: Hero MotoCorp, the country’s leading two-wheeler manufacturer, witnessed a sharp decline in its share price, dropping over 4 per cent on Tuesday.
The sharp drop in the company’s shares came in the wake of the Enforcement Directorate (ED) conducting raids at the residence of the company’s chairman, Pawan Munjal. The raid was part of a broader money laundering investigation, as reported by news agency PTI.
Following the news of the ED’s actions, Hero MotoCorp’s shares took a hit, falling 4.4 per cent to Rs 3,063 at approximately 1:00 pm.
The search operations were carried out at locations in Delhi and neighbouring Gurugram, under the provisions of the Prevention of Money Laundering Act (PMLA).
The investigation was triggered by a complaint from the Directorate of Revenue Intelligence (DRI) against an individual, allegedly having close ties to Pawan Munjal, who was earlier investigated on charges of carrying undeclared foreign currency.
It may be noted that the DRI had earlier arrested Pawan Munjal at the Delhi airport with foreign currency amounting to Rs 81 lakh. Meanwhile, in March 2022, the Income Tax Department conducted search operations at 25 premises linked to Hero MotoCorp as part of a tax evasion investigation against Hero MotoCorp.
Pawan Munjal led Hero MotoCorp’s global expansion after it parted ways with Honda in 2011. Munjal also holds executive positions in two industry bodies, the Confederation of Indian Industry (CII) and the Society of Indian Automobile Manufacturers (SIAM).
