[TusharK]

The Enforcement Directorate (ED) has conducted raids at the residence of Hero MotoCorp chairman Pawan Munjal as part of a money laundering investigation.



According to media reports, raids were carried out at Munjal's premises in Delhi and Gurugram. A case has been registered against him under the Prevention of Money Laundering Act (PMLA). The company is yet to issue an official statement regarding the recent developments.

The ED is said to have acted after receiving inputs from the Department of Revenue Intelligence. Earlier, the DRI had caught a close aide of Munjal with a large amount of undeclared foreign currency. In March 2022, the Income Tax department had also conducted searches at Hero MotoCorp offices over alleged tax evasion.

Hero MotoCorp is India's largest 2-wheeler manufacturer with a global presence. The company exports its products to more than 40 countries in Asia, Africa, and South and Central America.

Source: HT

Link to Team-BHP News

[aargee]

After IT raids, now its ED raid

Yusha in the other said Mr. Munjal rubbed someone's wrong side, perhaps wrong side of entire group?

[anjan_c2007]

As the old Persian adage goes "this too shall pass", indicating that neither the bad, nor good moments in life last forever.

Yes, there is definitely some vendetta from somewhere or everywhere, emanating from the corridors of power located at "as the crow flies" distances from the Munjal establishments. Let us hope things get amicably settled.

Agitating matters in the courts of law during such exigencies are what businessmen, read tycoons avoid unless pushed to the wall to avoid adding salt to the "so called wounds" that someone (or everyone?) in the corridors of power has / have suffered.

The ED raids can be best described now at this stage as a side brush, causing some scratches and minor dents to Munjal's car and not a head on collision.

[pranavshet]

Let me put a chronology in place rather than to comment on who is right/wrong
The start of questions: 1. IT raids took place in March 2022, MCA has ordered an inspection into the books of Hero in June 2023 and now there is ED raid.

IT had alleged bogus expenses in excess of 1000 crores.

He gave up his CEO tag and redesignated himself to WTD & Executive chairman.

Even in recent times, he was chairman designate of SIAM. but he renounced it citing personal commitments.

Though the matter is sub judice and inappropriate for us to take sides, it would be better for the company to come out clean. In this process, the retail investors will take the hit.

I don't know why he is presented to be like god-like person. I always felt that Hero had to be professionally managed like say L&T & HUL.

[pranavshet]

Allegedly he did it with many black elements and without any declaration as required by law. It is alleged that funds from Hero were diverted. This is a point that bugs me. A promoter may do whatever he wants to do from personal funds.

For me, the problem is the alleged diversion of money from Hero's balance sheet to fund his personal whims and fancies. The allegation was that lots of accommodating entries were passed.

For me this allegation is scary.

Corporate governance is at it's shakiest times at Hero. The top management has lots of answering to do in AGM & also during Q1 Analyst Concall.

[Haze]

FIR registered, Hero stock drops 2.75%

https://www.livemint.com/companies/d...834207623.html

[GTO]

From the Times of India daily newsletter, this is becoming serious!

Enforcement Directorate. The central probe agency on Friday said it has attached assets worth around Rs 25 crore of Hero MotoCorp executive chairperson Pawan Kant Munjal as part of a money laundering investigation. According to an ED statement, the assets include three immovable properties of Munjal in Delhi. The agency had carried out raids against Munjal and his companies in August after filing a money laundering case against him after taking cognisance of a Directorate of Revenue Intelligence chargesheet that accused him of taking foreign currency out of India illegally.

[volkman10]

Delhi HC stays DRI order against Hero MotoCorp chairman Pawan Munjal.

Link

[Proxima]

For some reason I've never trusted Munjal. Hero has always flattered to decieve and is giving me Satyam vibes. Hopefully, I'm proved wrong though.

As an example:
Wonder why he would take a pay cut at a time when the Indian auto industry is doing great?
https://www.moneycontrol.com/news/bu...-11644921.html

[pranavshet]

Originally Posted by Proxima

For some reason I've never trusted Munjal. Hero has always flattered to decieve and is giving me Satyam vibes. Hopefully, I'm proved wrong though.

As an example:
Wonder why he would take a pay cut at a time when the Indian auto industry is doing great?
https://www.moneycontrol.com/news/bu...-11644921.html

Bro, that guy used to draw remuneration in excess of 90 crores when he was MD. Now he is WTD. Niranjan Gupta is their new CEO. Also, Mr. Munjal has taken a cut only in his fixed component. If Hero continues to perform like how they performed in Q2 he might very well draw in excess of 100 crores.

Don't take this too seriously. This is a publicity stunt. Mr. Niranjan Gupta might be paid in excess of 10 crores. That guy is brilliant.

Mr. Munjal presumably is facing heat from ED for using foreign exchange in alleged violation of FEMA provisions. This: might be diversionary tactics.

This is just an hogwash and not to be taken seriously

[howler]

Originally Posted by anjan_c2007

Yes, there is definitely some vendetta from somewhere or everywhere, emanating from the corridors of power located at "as the crow flies" distances from the Munjal establishments. Let us hope things get amicably settled.

Agitating matters in the courts of law during such exigencies are what businessmen, read tycoons avoid unless pushed to the wall to avoid adding salt to the "so called wounds" that someone (or everyone?) in the corridors of power has / have suffered.

Care to share some facts that support your statement of this being a politically or otherwise motivated vendetta?

[anjan_c2007]

The Delhi High Court had earlier stayed the DRI proceedings against Mr Munjal on 03/11/23 and has on 17/11, also stayed the proceedings against him by the ED. The Sr Counsel for Mr Munjal, the petitioner argued that the the ED proceedings were piggyback riding on the DRI investigations that had already been stayed. And hence the ED investigations too need to be stayed. The High Court concurred with his views. Hence both the DRI and ED investigations are presently stayed. The stay is only against investigations in respect of Mr Munjal, while it can continue against other entities, the Court has ruled.

The next hearing date is 21/03/24.

The link:-

https://www.moneycontrol.com/news/tr...ource=inshorts

[timuseravan]

It will be good for Hero and our motorcycling community, if this results in Pawan Munjal stepping down from the company completely. He has let the brand completely stagnate blowing the lead they had in performance motorcycles.