The Income Tax (IT) Department on Wednesday, 23 March, is conducting searches on several premises linked to Hero MotoCorp Chairman Pawan Munjal and other senior executives of the company for suspected tax evasion.
Munjal’s offices and residential premises in Gurugram, Haryana, Delhi and few other locations are being covered, as per sources quoted by news agency ANI.
A team of IT officials are looking at financial documents and other business transactions of the company and the promoters.
"The searches are being conducted at Hero MotoCorp Chairman Pawan Munjal premises. Over two dozen premises of Hero Moto Corp and its senior executives are also being searched. Search and Seizure action on suspicion of tax evasion," sources in the IT department told NDTV.
Following the news of the raids, share prices of Hero MotoCorp slumped by nearly 4 percent, reported ANI. Trading had started on a positive note at Rs 2433.05 against its previous day's close at Rs 2421.30.
However, part of the losses was recovered later in the day and shares were trading 1.62 per cent down at Rs 2382.10 at 13.12 pm, as per the report.
The automobile company, which has a presence in 40 countries in Asia, Africa, South America and Central America, had reported a 29 percent fall in total wholesales in February, selling 3,58,254 units as against 5,05,467 units in the corresponding period of last year, according to a company statement.
Further, domestic sales were also down 31.57 percent at 3,31,462 units last month compared to 4,84,433 units in February 2021.
(With inputs from ANI and NDTV.)
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