The searches are based on actionable intelligence inputs, says a Senior Tax Official. Shares of Hero Motocorp have dipped by 4% on reports of searches.
The Income Tax Department conducts search operations at the residence and offices of Senior Management Personnel of Hero Motocorp, including the Chief Executive Officer and Managing Director, Pawan Munjal.
Share Prices have also dipped by around 4% on Wednesday after the Income Tax Department conducted searches.
Trade in the shares started at Rs. 2433.05, higher than the previous day’s close at Rs. 2421.30, but it dipped to a low at Rs. 2328.85 in early morning trade after the reports of IT Dept. searches emerged.
A Senior Tax Official has stated that around 25 locations have been searched in Delhi, Gurugram, and other parts of North India over tax evasion. Other sources have confirmed that the searches are being conducted on actionable intelligence inputs against the senior personnel of the two-wheeler giant.
The searches are underway and may continue until Thursday.
Earlier this month on 14th March, Income Tax Department conducted searches at 45 premises of a prominent real estate group of North India. The action had led to the seizure of unaccounted cash of Rs. 25 crores and jewelry worth Rs. 5 crores.
Hero Motocorp, the largest two-wheeler company, with over 50% share in the domestic two-wheeler market, has expanded its presence in more than 40 countries.
Pawan Munjal is a renowned corporate leader. Apart from leading Hero Motocorp, he is also the Chairman of Hero Fincorp Limited and is a director on the board of Hero InvestCorp Private Limited, Hero Future Energies Global Limited, and many others as a Director.
