Hero MotoCorp Chairman and MD Pawan Munjal are under income tax raid at his house and office. Pawan Munjal’s Gurgaon home and office are currently under search by the Income Tax Department.
He is accused of claiming bogus expenses on his accounts. There have been reports that some of the suspicious expenses received by the IT team are also being paid for by in-house companies. This raid is expected to continue even further. As of yet, Hero MotoCorp and the IT department haven’t announced anything.
In reaction to this news, Hero MotoCorp’s shares began to fall. Before news of the raids was released, Hero MotoCorp was trading in profit. Once it caught on, the stock lost all momentum. About 10:30 am, Hero MotoCorp’s stock had fallen by about 2 percent.
The Hero MotoCorp company is the world’s largest manufacturer of two-wheelers. With offices in over 40 countries, the company produces bikes for a variety of markets. Heroes Motocorp is also present in countries such as Asia, Africa, and America. The power of Hero MotoCorp in the Indian two-wheeler market can be seen in some statistics. Hero MotoCorp is the company that sells 50 percent of all two-wheelers in India.