Hero MotoCorp confirms ED visit at Pawan Munjal's residence after raid triggers worst stock fall in over a year

Pawan Munjal CMD- Hero MotoCorp

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26 Aug, 2025 12:21

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Hero MotoCorp on August 1 issued a confirmation on the "visit by Enforcement Directorate (ED) officials" at the residence of the company's chairman Pawan Munjal.

The ED officials also visited the company's premises based in Delhi and Gurugram, it said in a regulatory filing.

"Officials from the Enforcement Directorate today visited two of our offices in Delhi and Gurugram and the residence of our Executive Chairman Dr Pawan Munjal. We continue to extend all cooperation to the agency," Hero MotoCorp informed the stock exchanges.

Shares of the company suffered its worst fall in over a year during the intraday trading, following the report of ED action against the company. The raid was initiated taking cognisance of a Directorate of Revenue Intelligence (DRI) case.

The searches were carried out at the premises located in Delhi and neighbouring Gurugram in accordance with provisions of the Prevention of Money Laundering Act (PMLA), CNBC TV-18 reported.

The investigation stems from a DRI complaint against a person, allegedly close to Munjal, who was investigated on charges of carrying undeclared foreign currency.

Shares of Hero MotoCorp had fallen over 4 percent, trading at a year's low of Rs 3,064, following the news of the ED raid. The scrip settled at Rs 3,103 apiece on the BSE at the close of the market hours, which was 3.14 percent lower than the previous day.

Earlier, in March 2022, the Income-Tax Department had raided Munjal and Hero Motocorp, as part of a tax evasion investigation. In June this year, news agency Reuters reported that the Ministry of Corporate Affairs has launched an investigation to evaluate the association between the company and a third-party vendor in a case related to the alleged diversion of funds.

Hero MotoCorp became the world's largest two-wheeler manufacturer in 2001, in terms of unit volume sales in a calendar year, and has maintained the title for the past 20 years. The company has a presence across 40 countries spanning Asia, Africa, and South and Central America.