ED hits Hero MotoCorp CEO again, seizes Rs. 25cr assets
The Enforcement Directorate (ED) has confiscated three Delhi properties valued at Rs. 25 crore, under the Prevention of Money Laundering Act, 2002. They belong to Pawan Munjal, Chairman and Managing Director of Hero MotoCorp. This action is a result of a complaint filed by the Directorate of Revenue Intelligence, accusing Munjal and others of illegally taking around Rs. 54 crore in foreign currency out of India.
Munjal's foreign exchange dealings are under scrutiny
ED investigations revealed that Munjal acquired foreign exchange in others' names, using it for personal expenses abroad. An event management firm obtained the currency from authorized dealers in employees' names, later handed to Munjal's relationship manager. The manager covertly transported the funds during Munjal's trips, surpassing the $2.5 lakh (Rs. 20.84 crore) per annum limit per person under the Liberalised Remittance Scheme, as stated by the ED.
Seizure and attachment worth Rs. 50 crore
Earlier this year on August 1, the ED carried out a search operation involving Munjal and other related parties and confiscated valuables worth nearly Rs. 25 crore along with digital evidence and other incriminating evidence. The combined value of the seizure and attachment now amounts to roughly Rs. 50 crore. In the meantime, Hero MotoCorp's shares dropped 1.70% to Rs. 3,120.05 on NSE in early trade on Friday.
Delhi HC stays criminal proceedings against Hero MotoCorp
In a separate incident, the Delhi High Court stayed criminal proceedings against Hero MotoCorp, its chairman, and officials in an alleged forgery case on Thursday. The trial court, responding to a complaint, had ordered the registration of an FIR, claiming that Hero MotoCorp produced fake bills worth Rs. 5.9 crore, obtaining a tax credit exceeding Rs. 55 lakh. Justice Swarana Kanta Sharma has extended the stay on the FIR and trial court order until December 6.
Munjal takes a 20% salary cut
Earlier this month, Munjal voluntarily agreed to a 20% salary reduction following the separation of the roles of Chairman and Chief Executive Officer of the company. In FY23, the firm paid Rs. 99.55 crore as remuneration to Munjal, an 18.02% increase from the previous year. After a 20% reduction, it will be around Rs. 80 crore. In contrast, the median remuneration of employees of the company during FY23 was Rs. 12.25 lakh.
