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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.