Dr. Pawan Munjal, Chairman and Managing Director of Hero MotoCorp was raided by the Income Tax Department last week. The search and seizure operation started at multiple locations in Delhi-NCR on March 23 and lasted for more than three days till March 26. Now, in a startling revelation, the IT searches have figured out bogus expenses worth Rs 1000+ Crores by the firm. Furthermore, cash transactions of more than Rs 100 Crore were made in purchase of a farmhouse in Chattarpur, Delhi. This has led to shares of Hero MotoCorp dipping by nearly 8 percent.
The IT raids covered around 40 premises in Delhi-NCR related to Pawan Munjal and Hero MotoCorp. Sources close to the development have disclosed that huge incriminating evidence has been seized by the IT officials during the 3-day long operation in the form of hard copy documents and digital data. The evidence showed bogus purchases, huge unaccounted cash expenditures and accommodation entries which are to the tune of over Rs 1000 Crore. The Income Tax Department has further unearthed evidence of cash transactions of more than Rs 100 Crore which were used for buying a farm house in the outskirts of Delhi. It was noticed that Pawan Munjal had bought a farmhouse by manipulating its market price to save tax and used black money in cash for payments over Rs 100 Crore.