Not Raid But "Routine Inquiry," Hero MotoCorp Clarifies Income Tax Department Visits

Hero MotoCorp issued an official statement over the Income Tax department's visits to the office and residence of Dr Pawan Munjal - Chairman and Managing Director, as well as other top officials in the company. In its statement, Hero said that the I-T department visit was part of a "routine inquiry" and isn't uncommon before the end of the financial year. The company further went on to iterate that it's "business as usual." Here's the complete statement.

Also Read: I-T Dept. Conducts Raids At Hero MotoCorp Chairman Pawan Munjal's Office & Residence

Dr Pawan Munjal - Chairman and MD, Hero MotoCorp

"Officials from the Income Tax department visited two of our offices in Delhi and Gurugram and the residence of our Chairman & CEO Dr 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."

However, the news did show its impact on Hero MotoCorp's shares slumped by 4 per cent earlier in the day. The company's shares opened on a positive note at Rs. 2,433.05 but the I-T visit's news broke soon after bringing down the share price to Rs. 2,382.10 by 1.12 pm, a drop of 3.85 per cent. The share price recovered to Rs. 2,394.65 by the end of the day.

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Pawan Munjal's home and offices in Gurugram in Haryana, Delhi and some more cities were searched, sources in the Income Tax department said.

According to news reports, the Income Tax Department began searches at several locations in Delhi and Gurugram as well as other parts of North India that were linked to the top management of Hero MotoCorp on Wednesday morning.

Hero MotoCorp is the world's largest two-wheeler manufacturer by volume. The company has a presence in over 40 countries and is the market leader in the Indian two-wheeler segment with over a 50 per cent market share. The company operates six manufacturing plants in India with plants located overseas in Bangladesh and Colombia. The company though has received a setback in the wake of the pandemic as wholesales declined by 29 per cent in February 2022 year-on-year.