Hero Motocorp : bogus expenses worth ₹1,000 crore detected in I-T raid

Mar 29, 2020 05:45 pm

I-T raid conducted from March 23 to March 26 at premises linked to Hero MotoCorp revealed shocking false expenditure of ₹ 1,000 crore made by the company.

Reacting to the reports, Hero Motocorp said the speculations are baseless. "We categorically deny the speculative press reports," it said, adding that the bogus expense allegations are "not borne out of any document served on us or our internal documents".

"We will inform exchanges once I-T Department concludes its findings," it further stated.

The market witnessed a significant drop in the stock of Hero Motocorp shortly after the reports were out. At 3:15 pm, the shares were trading at Rs 2,206 a piece at the BSE, which was 7.18 percent lower as compared to the previous day's close. The stock eventually settled at Rs 2,208.35, down 7.08 percent.

Notably, the I-T raids last week were carried out at two of the Hero Motocorp offices in Delhi and Gurugram, and at the residence of the company's chairman and CEO, Pawan Munjal.