Properties and offices linked to Hero MotoCorp Chairman Pawan Munjal and other top executives of the company were raided today by the Income Tax Department over allegations of tax evasion.
Pawan Munjal's home and offices in Gurugram in Haryana, Delhi and some more cities were searched, sources in the Income Tax department said.
A team of officials of the department examined financial documents and other business transactions of the company and its promoters, they said.
"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. It is a search and seizure action on suspicion of tax evasion," sources in the Income Tax department told NDTV.
"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," the company said in a statement.
It said Hero MotoCorp is an ethical and law-abiding corporate, and maintains the highest standards of impeccable corporate governance. "In keeping with this philosophy, we are extending our full cooperation to the authorities. We reassure all our stakeholders that it continues to be business as usual," the statement added.
The company's stocks fell 1.5% on news of the raids.
Led by Pawan Munjal, the company has units spread across 40 countries in Asia, Africa, and South and Central America.
Hero MotoCorp became the world's largest two-wheeler manufacturer in 2001, in terms of unit volume sales in a year. It has over 50 per cent share in the domestic motorcycle market and has sold over 100 million units across domestic and international markets..
In February, the company reported a significant 29 per cent fall in total wholesales, according to its statement.