Shares of HeroMoto Corp were crashing on Tuesday after media reports stated that the Enforcement Directorate was raiding the company’s chairman Pawan Munjal‘s residence.

What Happened: As per a CNBC TV18 report, the raids are been conducting in relation to a money laundering case. The report further adds that a case has been registered against Munjal under the Prevention of Money Laundering Act (PMLA).

Recently, the Directorate of Revenue Intelligence arrested a key associate of Pawan Munjal, who was found in possession of undisclosed foreign currency.

Back in March, the income tax (I-T) authorities conducted a thorough search at Hero MotoCorp’s offices and Pawan Munjal’s residence. The raid extended to various locations situated in Gurugram, Haryana, Delhi, and a few other places.

At the time of writing, Benzinga India’s mail seeking official comment from the company was not answered.

Price Action: Hero MotoCorp’s share price was down 4.33% to trade at ₹3,065.95 on Tuesday afternoon.

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