The Enforcement Directorate (ED) conducted raids at the residence of Hero MotoCorp Chairman Pawan Munjal and two company offices in Delhi and Gurugram on August 1, as part of an alleged money laundering investigation. The ED registered a case against Munjal under the Prevention of Money Laundering Act (PMLA).
The investigation was initiated based on a complaint by the Directorate of Revenue Intelligence (DRI) against a person allegedly associated with Munjal. The individual in question was being investigated for carrying undeclared foreign currency. As part of the investigation, the Income Tax Department had previously conducted raids on Munjal and Hero MotoCorp in March last year, focusing on a tax evasion probe.
Hero MotoCorp is the world’s largest two-wheeler manufacturer in terms of unit volume sales in a calendar year and has held this title for the past two decades. The company has a strong global presence with operations in 40 countries across Asia, Africa, South America, and Central America.
Aside from being the Chairman and Director of Hero MotoCorp, Pawan Munjal is involved in several other business ventures and serves on the Board of Directors for various companies, including Munjal Acme Packaging Systems Private Limited, Pan Mining Private Limited, Bahadur Chand Investments Private Limited, Hero InvestCorp Private Limited, Indian School of Business, Hero Future Energies Global Limited, and Rockman Industries Limited.
Pawan Munjal is the third child of Brijmohan Lall Munjal and Santosh Munjal. His father, Dr. Brijmohan Lall Munjal, founded the Hero Group. The company started with a focus on providing basic transport through cycles and gradually expanded its operations, establishing strong networks with vendors, dealers, and employees, which play a crucial role in holding the Hero Group together.
Following the ED’s actions, Hero MotoCorp’s stock experienced a significant drop during intraday trading, marking the worst stock fall in over a year. The company is cooperating with the agency during the ongoing investigation.