Hero MotoCorp Under MCA Scanner In Fund Diversion Case, Shares Crash

Hero MotoCorp is reportedly being investigated by India’s Ministry of Corporate Affairs for its alleged involvement in a case related to an alleged diversion of funds.

What Happened? India’s corporate affairs ministry has ordered a probe into the motorcycle manufacturer’s ties to a third-party vendor in a case that involves an alleged siphoning of funds, Reuters reported, citing sources.

Government sources told the publication that the probe had been ordered in “public interest.” They added that investigation will look into Hero’s ownership structure and whether it somehow controlled the third-party vendor.

See Also: Lenskart Gets Eye-Catching $100M Funding Boost From ChrysCapital

The company told Reuters in an email statement that it had not received any communication from the government and could not comment, but it will provide all information if asked by a regulatory authority. Benzinga had not independently received a response from the firm at the time of publication.

Price Action: Hero MotoCorp shares plummeted 3.6% to ₹2,826.65 in late afternoon trading on Thursday.

Take Stock Of The Week Ahead

Get all the latest Share Market trends and news to set you up for the week ahead.

Congratulations!
You have successfully subscribed.

Read Next: If You Invested ₹10,000 In Tata Steel A Year Ago, Here’s How Much You’d Have Today

Posted In: GovernmentNewsRegulationsTravelLegalGeneralHero MotorCorp