Hero under MCA lens for alleged diversion of funds
NEW DELHI: Country’s largest two-wheeler manufacturer Hero Motocorp is under the government’s lens with the Ministry of Corporate Affairs (MCA) initiating a probe against the company, as per reports.
The MCA has reportedly ordered a probe in a case related to the alleged diversion of funds via a related party vendor. The probe has been ordered in the “public interest” to probe the ownership structure of Hero MotoCorp and whether it controlled the third-party vendor. Shares of Hero dipped as much as 4.2% during Thursday afternoon trade following the report.
The company in a regulatory filing said it has not received any communication from MCA with regard to the media reports and hence cannot comment on the same. Hero added that they will provide all information, if and when it is sought from the Company by any regulatory authority.
“Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, is a responsible, law-abiding and much-admired Indian multinational, and known for following global best governance practices,” the statement said.
The fresh government order follows a preliminary inquiry conducted by the Registrar of Companies. Last year, the company was in the middle of a tax evasion probe. Tax Department had conducted raids on multiple premises of the company - including group Chairman and CEO Pawan Munjal.