Tuesday, April 23, 2024

Hero MotoCorp made over Rs 1,000 cr in bogus expenses: IT Dept

The Income Tax (I-T) Department said two-wheeler manufacturer Hero MotoCorp made over Rs 1,000 crore in bogus expenses and found multiple violations amounting to Rs 100 crore in transactions conducted for a farmhouse in Delhi.

The development comes after the department on March 23 conducted search and seizure raids at locations in Delhi-NCR on the premises related to Hero MotoCorp and its managing director Pawan Munjal and other top officials of the company.

According to news agency ANI, the I-T Department seized incriminating evidence in the form of hard copy documents and digital data during the raids conducted earlier. The evidence collected revealed the two-wheeler manufacturer booked bogus purchases, made huge unaccounted cash expenditures and obtained accommodation entries amounting to Rs 1,000 crore.

The ANI report further added that I-T Department also found evidence of cash transactions of more than Rs 100 crore in the purchase of a farmhouse on the outskirts of Delhi. Munjal purchased a farmhouse in Chhattarpur where the market price was manipulated to save tax and used black money to pay Rs 100 crore in cash in violation of section 269 SS of the IT Act, it added.

The company in a statement issued then said, “Officials from the Income Tax Department visited two of our offices in Delhi and Gurugram and the residence of our Chairman & CEO Dr. Pawan Munjal on Wednesday. We have been informed that this is a routine inquiry, which is not uncommon before the end of the financial year.”

“We reassure all our stakeholders that it continues to be business as usual,” it added. “We at Hero MotoCorp are an ethical and law-abiding corporate, and maintain the highest standards of impeccable corporate governance. In keeping with this philosophy, we are extending our full cooperation to the authorities,” the statement added.

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