ED seizes cash and jewellery worth ₹25 crore, incriminating documents during Hero MotoCorp raids

The Enforcement Directorate has seized cash and jewellery worth ₹25 crore during raids against top officials of Hero MotoCorp. The Central probe agency also found "incriminating" documents in the residences and officers of executive chairperson Pawan Kant Munjal and others. The development came mere weeks after the Ministry of Corporate Affairs ordered an investigation to assess Hero MotoCorp's relationship with a third-party vendor in a case related to alleged diversion of funds.

In an exchange filing on Tuesday, the company said that ED officials visited its offices as well as Munjal's residence. The money laundering case incidentally stems from a charge sheet filed by the Directorate of Revenue Intelligence and a Prevention of Money Laundering Act that case has been registered against the executive chairperson.

“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,” the company explained. 

WATCH: ED Raids Hero MotoCorp Chairman Pawan Munjal; Shares Plunge Over 3% | Details 

Earlier in March 2022 the Income Tax department had also raided the premises of Munjal and Hero MotorCorp as part of a tax evasion investigation. The Central Board of Direct Taxes had found alleged illegal business expenses of over ₹800 crore and records showing that ₹60 crore worth "unaccounted" cash used to purchase land in Delhi and role of some shell companies.

The automobile company had then said in a regulatory filing that it was a "law-abiding corporate, with robust internal financial controls" and its "financial statements are duly audited".

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 consecutive years.

(With inputs from agencies)