As part of a money laundering probe, the enforcement directorate (ED) conducted raids on Tuesday against Hero Motocorp Executive Chairman Pawan Munjal and some others, said officials. The searches were done at premises situated in Delhi and Gurugram as per arrangements under the Prevention of Money Laundering Act (PMLA), according to the news agency PTI.
The probe comes after a Directorate of Revenue Intelligence (DRI) objection against an individual, supposedly near Pawan Munjal, who was researched on charges of conveying undeclared, unfamiliar money.
In Tuesday's trading, Hero MotoCorp's shares fell. The stock fell 5.34 percent to hit a low of ₹3,032.10 on the BSE. The scrip is still up 13% year-to-date.
In March last year, the Income Tax Department raided Pawan Munjal and his organisation Hero MotoCorp, as a part of a tax evasion investigation.
In terms of annual unit volume sales, Hero MotoCorp became the world's largest manufacturer of two-wheelers in 2001 and has held that position ever since. The company has a presence across 40 nations, spreading over Asia, Africa, South America, and Central America.
What is PMLA?
The Prevention of Money Laundering Act (PMLA) was passed in 2002 with the intention of combating cases of tax evasion and money laundering. The act empowers the government or the public position to hold onto the property procured from the unlawfully acquired sources. The act expects to control the uncontrolled act of changing over wrongfully brought in cash into real cash.
On the off chance that an individual is viewed as at real fault for tax evasion than the person in question can land up in prison for three to seven years. The blameworthy individual will likewise be obligated to fine.
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