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The Indian government has reportedly ordered a probe the ownership structure of Hero MotoCorp and its relationship with a third-party vendor. The Ministry of Corporate Affairs ordered probe pertains to a case related to alleged diversion of funds and the formation of shell companies. Shares of Hero dipped as much as 4.2% during Thursday afternoon trade.
The Indian government has reportedly ordered a probe the ownership structure of Hero MotoCorp and its relationship with a third-party vendor. The Ministry of Corporate Affairs ordered probe pertains to a case related to alleged diversion of funds and the formation of shell companies. Shares of Hero dipped as much as 4.2% during Thursday afternoon trade.
According to a Reuters report quoting sources, the probe has been ordered in “public interest”. It will look into whether the company controlled the third party vendor. An Economic Times report added that the Ministry will also investigate the affairs of Salt Experiences and Management Private Limited – suspected to be a ‘linked entity’ of Hero MotoCorp.
According to a Reuters report quoting sources, the probe has been ordered in “public interest”. It will look into whether the company controlled the third party vendor. An Economic Times report added that the Ministry will also investigate the affairs of Salt Experiences and Management Private Limited – suspected to be a ‘linked entity’ of Hero MotoCorp.
The company however insisted that it was yet to receive any intimation from the government. “We will provide all information, if and when it is sought from us by any regulatory authority,” Reuters quoted a spokesperson as saying.
The company however insisted that it was yet to receive any intimation from the government. “We will provide all information, if and when it is sought from us by any regulatory authority,” Reuters quoted a spokesperson as saying.
Earlier in March 2022, the company had become embroiled in a tax evasion probe. The Income Tax Department had conducted raids on multiple premises of the company – including chairman and CEO of the group Pawan Munjal. Following the raids, the I-T depart had reportedly found illegal business expenses of over ₹800 crore, ₹60 crore “unaccounted” cash used to purchase land in Delhi and role of some shell companies.
Earlier in March 2022, the company had become embroiled in a tax evasion probe. The Income Tax Department had conducted raids on multiple premises of the company – including chairman and CEO of the group Pawan Munjal. Following the raids, the I-T depart had reportedly found illegal business expenses of over ₹800 crore, ₹60 crore “unaccounted” cash used to purchase land in Delhi and role of some shell companies.
“Incriminating documents and digital evidence have been found and seized indicating that the expenses ostensibly shown to have been claimed towards business purposes are not fully supported by evidences. Expenditure aggregating to more than ₹800 crore has been booked in the guise of purchase of services from a specific event management entity,” the the CBDT had said at the time.
“Incriminating documents and digital evidence have been found and seized indicating that the expenses ostensibly shown to have been claimed towards business purposes are not fully supported by evidences. Expenditure aggregating to more than ₹800 crore has been booked in the guise of purchase of services from a specific event management entity,” the the CBDT had said at the time.
(With inputs from agencies)
(With inputs from agencies)
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