The Ministry of Corporate Affairs (MCA) has reportedly launched an investigation into Hero MotoCorp, one of India’s leading motorcycle manufacturers. The Directorate General investigation, operating under the MCA, has taken notice of the Income Tax investigations and has initiated action against the company. The MCA has issued investigation orders under Sections 210(1)(c) and 216 of the Companies Act.
However, Hero MotoCorp has stated that they have not received any communication regarding the investigation and therefore cannot comment on the queries raised. They have assured that they will provide updated comments once they receive the official communication.
The Income Tax department had conducted investigations in March of the previous year, where they collected evidence suggesting that Hero MotoCorp had engaged in various irregular activities. These activities included booking bogus purchases, undertaking substantial unaccounted cash expenditures, and being involved in accommodation entries, amounting to over Rs 1,000 crore.
Furthermore, the department reportedly discovered cash transactions worth over Rs 100 crore related to a farmhouse in Chhattarpur, Delhi. During the search and seizure operation carried out between March 23 and 26, the Income Tax department targeted multiple locations, including the offices and residential properties of Hero MotoCorp’s Chairman and Managing Director, Pawan Munjal.
In summary, the Ministry of Corporate Affairs has initiated an investigation into Hero MotoCorp based on the findings from the Income Tax department’s previous investigation. Hero MotoCorp, however, claims to be unaware of the investigation and has not yet commented on the specific queries. The company and its Chairman and Managing Director were subjected to search and seizure operations in relation to alleged tax evasion activities.
