I-T department raid of Hero MotoCorp part of routine inquiry, says company

Pawan Munjal, CEO, MD & Chairman of Hero MotoCorp (File Image / Source: Reuters)

Hero MotoCorp has released a statement saying that Income Tax officials raided their offices and the residence of the chairman as a part of a routine inquiry.

The statement read: “Officials from the Income Tax Department visited two of our offices in Delhi and Gurugram and the residence of our Chairman & CEO Dr Pawan Munjal on Wednesday. We have been informed that this is routine inquiry, which is not uncommon before the end of the financial year.”

“We assure all our stakeholders that it continues to be business as usual.”

The Income Tax (I-T) department had on March 23 conducted search operations at Hero MotoCorp, sources had told CNBC-TV18.

“Search operations are currently underway at about 25 premises of Hero MotoCorp, including at offices and residences of senior management in Delhi, Gurgaon and other parts of North India,” a source said.

The searches, which began at 7am today, are also covering Hero MotoCorp Chairman and MD Pawan Munjal’s office and residence, according to multiple sources.

CNBC TV-18 has reached out to Hero MotoCorp and their response is awaited.

Sources told PTI that the raids are part of a tax evasion investigation and a team of officials of the department are looking at financial documents and other business transactions of the company and the promoters.

After the news broke, Hero MotoCorp share price slipped 4 percent intraday.

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At 10:37am, Hero MotoCorp was quoting at Rs 2,384.20, down Rs 37.10, or 1.53 percent, on the BSE.

The share touched a 52-week high of Rs 3,141.55 and a 52-week low of Rs 2,148.00 on March 22, 2021 and March 8, 2022, respectively. It is trading 24.11 percent below its 52-week high and 11 percent above its 52-week low.

The I-T department also conducted searches at 24 locations in Mumbai, Chennai and Bengaluru, connected to the Mumbai-based real estate firm Hiranandani Group on March 22.

"The group has already clarified that the offshore trust/assets held by the family abroad is fully bonafide and compliant with all laws. Further, all queries of the authorities are being fully addressed and we assure our full cooperation in the matter,” a spokesperson for Hiranandani Group said.

In October 2021, names of Niranjan Hiranandani, the founder of the Hiranandani Group, and key members of his family had figured in the Pandora papers which had said that they were beneficiaries of a Trust with assets of over $60 million.

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