India's ED recovers assets worth $3 mln from Hero MotorCorp's Munjal (updated)

Munjal Showa

02/08/2023 17:14

(Adds details about the probe throughout)
       BENGALURU, Aug 2 (Reuters) - India's Enforcement
Directorate (ED) has recovered assets worth $3 million from Hero
MotoCorp's  HROM.NS  chairperson, Pawan Kant Munjal, and others,
following a money-laundering investigation, the agency said on
Wednesday.
        The agency's probe follows complaints that 540 million
rupees ($6.53 million) worth of foreign currency and other
valuable items were illegally moved to offshore locations by
Hero's third-party vendor that was later used by Munjal for his
personal expenses, it said in a statement.
  
        The ED has recovered foreign currency, cash, gold, and
diamond jewelry worth about 250 million rupees, after it
conducted searches at 12 premises owned by the company and its
promoter, the agency said. 
  
        Hero, which is India's largest two-wheeler maker, said
on Tuesday that officials from the agency had visited its
offices in Delhi and Gurugram as well as Munjal's residence.
  
        The ED's actions come after the Ministry of Corporate
Affairs in June had ordered an investigation into Hero's
relationship with the third-party vendor, Salt Experience and
Management, in a case related to the alleged diversion of funds.
  
        Hero was also under the scrutiny of India's income tax
authorities last year which was termed as "routine inquiry" by
the company.
  
        Hero shares closed 3.5% lower on Wednesday.
  
($1 = 82.7240 Indian rupees)

 (Reporting by Dimpal Gulwani in Bengaluru; Editing by Anil
D'Silva)
 ((Dimpal.Gulwani@thomsonreuters.com;))