Hero MotoCorp experienced a decline of more than 4 percent – indiansupdate.com
On August 1, the shares of Hero MotoCorp experienced a decline of more than 4 percent after reports from CNBC TV-18 indicated that the Enforcement Directorate (ED) had conducted raids inside the home of Hero MotoCorp Chairman Pawan Munjal. The ED initiated the raid in response to a case investigated by the Directorate of Revenue Intelligence (DRI). The DRI had recently apprehended a close associate of Pawan Munjal in possession of undeclared foreign currency. Following this news of the ED raid, the shares of Hero MotoCorp dropped over 4 percent, reaching a year’s low at Rs 3,064.
In addition to this development, Moneycontrol reported on June 15 that the Ministry of Corporate Affairs (MCA) is currently investigating domestic automobile major Hero MotoCorp. The probe was initiated by the MCA after taking note of an earlier investigation conducted by the Income Tax department, which focused on certain transactions of Hero Motocorp. According to news agency Reuters, the MCA will assess Hero MotoCorp’s association with a third-party vendor in a case involving alleged diversion of funds. Additionally, the MCA will scrutinize the company’s ownership structure.