The Enforcement Directorate (ED) has seized cash, jewellery, and various incriminating documents with a total value of Rs 25 crore. This was the result of raids conducted by the ED at the business and residential premises of executive chairperson Pawan Kant Munjal and others. The raids took place in Delhi and Gurugram as part of an ongoing money laundering investigation. The exact amount seized from each location has not been disclosed.
Hero Motor Corp has not provided an immediate comment on the matter but has stated that they are cooperating fully with the ED. The seized items include foreign and Indian currencies, gold and diamond jewellery (including foreign origin gold), hard disks, and mobile phones. The raids were conducted at the residential and business premises of Munjal, Hemant Dahiya, K R Raman, Hero MotoCorp Limited, and Hero Fincorp Limited.
The case registered by the ED under the Prevention of Money Laundering Act (PMLA) originated from a charge sheet filed by the Directorate of Revenue Intelligence (DRI) before a Delhi Court. The charge sheet was filed under section 135 of the Customs Act for evasion of duty or prohibitions. The DRI complaint alleged the “carrying, attempting to export, and illicit export of prohibited items, i.e. foreign currency” against P K Munjal, SEMPL (a third-party service provider company), Amit Bali, Hemant Dahiya, K R Raman, and others.
According to the ED, Salt Experience and Management Pvt. Ltd. (SEMPL) illegally exported foreign currency equivalent to about Rs 54 crore between 2014 and 2019. This currency was ultimately used for P K Munjal’s personal expenses. SEMPL is accused of obtaining foreign exchange beyond the annual permissible limit in the names of its officials/employees. The investigation revealed that one of Munjal’s associates illegally exported approximately Rs 40 crore worth of foreign currency for his personal and business trips.
Hero MotoCorp, the world’s largest two-wheeler manufacturer, has a presence in 40 countries across Asia, Africa, and South and Central America. The company prides itself on its rapid expansion and its commitment to being a global brand. It is worth noting that Hero MotoCorp and Munjal were also subject to raids by the Income Tax Department last year for suspected tax evasion.
The raids conducted by the tax authorities discovered alleged illegal business expenses worth over Rs 800 crore and evidence of Rs 60 crore worth of unaccounted cash used for land purchase in Delhi through dubious shell companies. Hero MotoCorp, in response, maintained that it is a law-abiding corporate entity with robust internal controls and duly audited financial statements.
What is the Prevention of Money Laundering Act (PMLA)?
The Prevention of Money Laundering Act (PMLA) was enacted in 2002 to combat tax evasion and money laundering. The act empowers the government to confiscate properties acquired from illegal sources. Those found guilty of money laundering can face imprisonment of three to seven years, along with fines.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
