The Income Tax Department conducted searches at premises related to Hero MotoCorp on Wednesday. The action against the largest two-wheeler manufacturer in India is part of an investigation into alleged tax evasion.
Tax sleuths have raided offices and residential premises of chairman and CEO of the group, Pawan Munjal, as well as locations related to other top officials of Hero MotoCorp across Delhi and Gurugram.
Officials of the Income Tax Department are looking at financial documents and other business transactions of the company and its promoters, a news agency reported.
Meanwhile, Hero MotoCorp stated that the searches were part of a routine inquiry. "Officials from the Income Tax Department visited two of our offices in Delhi and Gurugram and the residence of our Chairman & CEO 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," a company spokesperson tells Fortune India.
"We reassure all our stakeholders that it continues to be business as usual," the auto major further stated. "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."
On particular queries related to the nature of the income tax officials visit, and on charges of tax evasion, the company declined to comment.
As the reports of the tax searches emerged, share price of Hero MotoCorp declined to ₹2,382.45, down 38.85 points or 1.60%. The stock recorded an intraday low of ₹2,328.85 after opening higher at ₹2,433.05.
Hero MotoCorp has been the world’s largest two-wheeler manufacturer in terms of unit volume sales in a calendar year since 2001. Till date, the company has sold over 100 million units across domestic and international markets. The company maintains a leading position in the two-wheeler market.
The Pawan Munjal-led company is present across 40 countries in Asia, Africa and South and Central America.