ED Raids Hero MotoCorp Chairman's Residence; Shares Down By 3%

The Enforcement Directorate (ED) raided the residence of Pawan Munjal, chairman of Hero MotoCorp Ltd earlier today according to reports. The raid was conducted across various residences of Munjal in Delhi and Gurugram and as per the report a case against him has been filed under the Prevention of Money Laundering Act (PMLA).   

The after effect of this news was clearly apparent in investor sentiments as share prices of Hero MotoCorp fell by over 3 per cent. Senior management officials at Hero MotoCorp and ED officials haven’t given any statement yet. AckoDrive tried getting in touch with the spokespersons of the brand but they too haven’t issued any official statement at the time of filing this story. 

This isn’t the first time that Pawan Munjal has come under scrutiny of Government agencies. In March, 2022, the Income Tax Department had conducted raids at Hero MotoCorp’s offices and his private residence for alleged tax evasion. Hero MotoCorp is India’s largest two-wheeler manufacturer and bulk of its sales comes from the commuter segment in which the Hero Splendor is its star product. It also handles operations for the iconic American brand, Harley-Davidson, in India. In fact, the cheapest Harley bike on sale globally, the X440 is manufactured by Hero. It will be soon relaunching the legendary Karizma XMR 21O which is scheduled to go on sale later this month.