According to ANI, the Income Tax Department found out that Hero MotoCorp made over 1000 crore in fake charges and more than 100 crore in cash transactions for a farmhouse in Chhattarpur, Delhi.
On March 23, the Income Tax Department conducted a search and seizure operation in Delhi NCR on Hero Motocorp and its chairman and managing director Pawan Munjal, which ended on March 26.
The search efforts included more than 40 areas across Delhi and the National Capital Region.
According to ANI, during the search operations, a considerable amount of damning material in the form of hard copy papers and digital data was recovered. These documents disclosed that the group had manufactured fictitious transactions, made large unexplained cash expenditures, and got lodging entries totaling more than Rs 1000 crore.
The Department also learned about the cash transactions of more than ₹ 100 crore made in favor of a purchase of a farmhouse in outer Delhi.
Also Read: Hero MotoCorp Ltd Quarterly Net Profit Falls 37% At ₹686 Cr; Inflation Eating Up Sales
Munjal bought a farmhouse in Chhattarpur where they tricked the market price of the farmhouse to save tax and used black money to pay over ₹ 100 crore; a violation of section 269 SS of the IT Act.
As per section 269SS of the Income Tax Act, while transacting Immovable Property, a 100 percent penalty is to be imposed if the seller accepts the money accounting for ₹ 20,000 or more in cash from the buyer.
Last week, the IT department conducted raids at the offices and residential premises of Hero MotoCorp’s promoters, which included the residence and office of Pawan Munjal.
Statements of those present at the place where raids happened were recorded, and panchnama was duly done.
The shares of Hero MotoCorp Plunged more than 7% on BSE and closed at Rs 2155.