The Enforcement Directorate (ED) has confiscated property worth $3 million from Hero MotoCorp Chairman, Pawan Munjal, intensifying the ongoing money laundering probe against him.
What Happened: According to a Reuters report on Friday, the ED impounded three of Munjal’s New Delhi properties under The Prevention of Money Laundering Act, 2002. This action has raised the total estimated value of attachments and seizures related to this investigation to approximately 500 million rupees.
Neither Hero MotoCorp nor Munjal have issued a response to Reuters’ request for comment.
Last month, following allegations of forgery and fraud made by Brains Logistics, a company that supplied manpower services to the two-wheeler giant, the Delhi Police filed a case against Hero and Munjal.
Why It Matters: This development follows a series of events that began in August when the ED reportedly raided Munjal’s residence and arrested a key associate of Munjal for possessing undisclosed foreign currency. The raid was in connection to a money laundering case registered under the Prevention of Money Laundering Act (PMLA).
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In October, the Delhi Police escalated allegations of forgery against Munjal, and Hero MotoCorp clarified that the complaint related to an issue prior to 2010 and had no links to the ongoing investigations.
Following these allegations, Hero FinCorp, the financial service unit of Hero MotoCorp, was reported to be preparing for a ₹4,000 crore IPO in 2024, notwithstanding these legal hurdles. The seizure of Munjal’s assets is likely to cast a shadow over these plans and the reputation of Hero MotoCorp in the market.
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