The Income Tax department conducted search operations at 25 premises linked to Hero MotoCorp on Wednesday as part of a tax evasion investigation against the country's largest two-wheeler manufacturer, sources told CNBC-TV18.
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The search operations were underway at offices and residences of senior management in Delhi, Gurugram, and other parts of North India, the sources said. The searches were conducted at Hero MotoCorp chairman and chief executive Pawan Munjal's office and residence, too, the sources added.
A team of officials of the department is looking at financial documents and other business transactions of the company and its promoters, they said. The I-T department began the operation at 7 am on Wednesday.
In a statement after the searches, Hero MotoCorp said: “Officials from the Income Tax department visited two of our offices in Delhi and Gurugram and the residence of our chairman and chief executive Pawan Munjal on Wednesday. We have been informed that this is a routine inquiry, which is not uncommon before the end of the financial year."
"We reassure all our stakeholders that it continues to be business as usual. We at Hero MotoCorp are an ethical and law-abiding corporate, and maintain the highest standards of impeccable corporate governance. In keeping with this philosophy, we are extending our full cooperation to the authorities,” the company said.
After the news broke, Hero MotoCorp share price slipped 4 percent intraday. On BSE, the company's stock opened the day at Rs 2,426.15 and was trading at around Rs 2,385.55 around 1 pm. The stock hit a low of Rs 2,340 around 10 am. The stock ended the day at Rs 2,395.40, down 1.07 percent on BSE.
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. To date, it has sold over 100 million units across domestic and international markets.
With inputs from PTI