NEW DELHI: The Hero MotoCorp- Income Tax Department saga has taken a fresh turn. After the two-wheeler-maker said last week that the I-T search operation of March 23 was a routine affair, a fresh media report said that the Department has found the company making more than Rs 1,000 crore bogus expenses and over Rs 100 crore cash transactions for a farmhouse in Chhattarpur, Delhi.
Hero MotoCorp, however, categorically denied the media report. “The allegations made in the press report are not borne out of any document that have been served on us or our internal documents. Therefore, we categorically deny the speculative press reports,” Hero MotoCorp said.
It added, “We wish to clarify that officials from the Income Tax department visited our offices in the previous week. The Company has provided all support and cooperation, necessary documents and data to the authorities and will continue to do so if required.
Hero also said that as and when the tax department concludes its findings and communicates, they would inform the exchanges suitably. A news agency on Tuesday reported that a large number of incriminating evidence in the form of hard copy documents and digital data was seized by the I-T Dept during the search operations.
The report had a big impact on Hero MotoCorp’s share prices. The stock declined over 7% to close the Tuesday session at Rs 2,208.35 on the BSE. It touched day’s low of Rs 2,155 , which was Rs 7 away from its 52-week low of Rs 2,148. The I-T Dept on March 23 had conducted searches on several premises linked to Hero MotoCorp Chairman & CEO Pawan Munjal and other senior executives of the company over allegations of tax evasion.
The company had then said this is a routine inquiry, which is not uncommon before the end of the financial year. It reassured its stakeholders that it continues to be business as usual.
Hero two-wheelers to be expensive by Rs 2K
Hero MotoCorp will make an upward revision in the ex-showroom prices of its motorcycles and scooters, with effect from April 5, 2022. The price revision will be up to Rs 2,000 and the exact quantum of increase will be subject to specific model and the market. The company said it took the decision to offset the impact of increasing commodity prices.