Jobaaj Stories
In a surprising turn of events, Hero MotoCorp, the world's largest two-wheeler manufacturer, witnessed a sharp decline in its shares on August 1. The decline amounted to over 4 percent following a CNBC TV-18 report, which revealed that the Enforcement Directorate (ED) conducted raids at the residence of the company's Chairman, Pawan Munjal.
The ED initiated the raid after taking cognisance of a case filed by the Directorate of Revenue Intelligence (DRI). The investigation pertains to a complaint against an individual allegedly close to Mr Munjal, who was under scrutiny for carrying undeclared foreign currency.
The searches were carried out at premises located in Delhi and neighboring Gurugram, in accordance with the provisions of the Prevention of Money Laundering Act (PMLA).
As a result of the breaking news, Hero MotoCorp's shares plummeted to a year's low, trading at Rs 3,064. The development adds further strain to the company, as earlier in March 2022, both Pawan Munjal and Hero MotoCorp were subject to a raid by the Income Tax Department as part of a tax evasion investigation.
Hero MotoCorp's journey to becoming the world's largest two-wheeler manufacturer began in 2001, and the company has maintained its title for an impressive 20 consecutive years. With a formidable presence across 40 countries in Asia, Africa, and South and Central America, the recent developments have raised concerns among investors and industry experts.
The impact of the ongoing investigation and its potential outcomes remain uncertain, and investors are closely monitoring the situation. As the story unfolds, it is yet to be seen how Hero MotoCorp will navigate through these challenging times and maintain its leading position in the competitive two-wheeler market.
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