Hero MotoCorp Made Bogus Expenses Of Over Rs. 1,000 Crore, Alleges IT Department

The Income Tax Department has alleged that India's largest two-wheeler manufacturer, Hero MotoCorp made bogus expenses of more than Rs. 1,000 crore. According to latest reports, which quote sources, the company made more than Rs. 1,000 crore bogus expenses and over Rs. 100 crore cash transactions for a farmhouse in Delhi's Chhattarpur area. The investigation is still under progress, according to Income Tax Department sources cited in one report.

Also Read: Not Raid, But "Routine Enquiry," Says Hero MotoCorp On IT Department Visits

The locations of the Income Tax Department raids also included the residence of Hero MotoCorp Chairman and CEO Pawan Munjal.

Also Read: IT Department Conducts Raids At Hero MotoCorp Chairman Pawan Munjal's Office & Residence

The allegations of bogus expenses come after the Income Tax Department carried out a search and seizure operation on March 23, 2022 on Hero MotoCorp Limited and its Chairman and CEO Pawan Munjal at multiple locations in Delhi-NCR which concluded on March 26, 2022. The search operations covered more than 40 locations, including Pawan Munjal's residence. The searches are believed to be part of a tax evasion investigation against India's largest two-wheeler manufacturer.

According to sources quoted in one news report, a large number of incriminating evidence in the form of hard copy documents and digital data have been seized during the search operations. The Department also found evidence of cash transactions of more than Rs. 100 crore in the purchase of a farmhouse on the outskirts of Delhi. According to the report, Munjal purchased the farmhouse where the market price was manipulated to save tax and black money was used to pay cash more than Rs. 100 crore, which is a violation of Section 269 SS of the Income Tax Act.

Hero MotoCorp emerged as the world's largest two-wheeler manufacturer by volume in 2001, a position the company has managed to hold on to.

carandbike has tried reaching out to Hero MotoCorp for a statement or a reaction to the latest reports, but so far, the company has not responded. Hero MotoCorp is India's largest two-wheeler manufacturer, and also holds the distinction of being the world's largest two-wheeler manufacturer by volume, in terms of units sold in a calendar year, since 2001. The company also has a strong presence in over 40 countries, with manufacturing facilities in Colombia and Bangladesh, outside India. The company also has assembly units in Kenya, Tanzania and Uganda in East Africa.