Hero MotoCorp Shares Plunge 7% after IT raid

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Hero MotoCorp Shares Plunge 7% after IT raid
30 Mar 2022
7 min read

News Synopsis

A few days ago, Income Tax Department conducted a raid on the premises of Hero MotoCorp, India’s biggest two-wheeler manufacturer. It simultaneously also raided the residence of the Top executives of the Company, including Pawan Munjal. The two-wheeler maker is accused to be involved in a case of ₹1,000 crores worth of fake expenses. Companies reduce their liable income for tax by reporting bogus expenses. As per the report by CNBC TV18, the Income Tax Department carried out the raid between March 23 and March 26 at the premises of the company. Though no official statement has been released by the Department, news agency ANI has informed that its sources have revealed that “incriminating evidence” has been found against Hero MotoCorp. As this news surfaced in the media, shares of Hero MotoCorp plunged by 7%. Recently Hero MotoCorp has issued a statement regarding this and it stated: “The allegations made in the press report are not borne out of any document that have been served on us or our internal documents. Therefore, we categorically deny the speculative press reports. We wish to clarify that officials from the Income Tax department visited our offices in the previous week. As and when the tax department concludes its findings and communicates to us, we will inform the exchanges suitably.”

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