Bengaluru: Officials from India’s financial crime fighting agency conducted a search at the residence of two-wheeler maker Hero MotoCorp’s Chairman Pawan Munjal on Tuesday, according to a source aware of the matter.
The Enforcement Directorate took cognisance of a Directorate of Revenue Intelligence (DRI) case and a Prevention of Money Laundering Act case has been registered against Munjal, CNBC-TV18 reported, citing sources.
The raid comes on the heels of an investigation ordered by the Ministry of Corporate Affairs in June to assess Hero MotoCorp’s relationship with a third-party vendor in a case related to alleged diversion of funds.
Hero MotoCorp, India’s largest manufacturer of motorcycles, and the Enforcement Directorate did not immediately respond to Reuters’ request for comments. The source could not be named as they are not authorised to speak to the media.
Hero MotoCorp was under the scrutiny of India’s income tax authorities last year, which the company had termed a “routine inquiry.”
Shares of the company fell as much as 5.4% after the news and was the top drag on the benchmark Nifty 50 index.
(Reporting by Aditya Kalra in New Delhi and Navamya Ganesh Acharya in Bengaluru; Editing by Sonia Cheema)
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