Rs 1,000 crore bogus expenses detected in I-T raid on Hero Motocorp; Share Price slides 7%

The Income Tax Department discovered that Hero MotoCorp made over 1000 crore in bogus expenses and over 100 crore in cash transactions for a farmhouse in Chhattarpur, Delhi,  according to ANI.

The Income Tax Department conducted a search and seizure operation on Hero Motocorp and its chairman and managing director Pawan Munjal on March 23 at various locations in Delhi NCR, which concluded on March 26.

The search operations spanned more than 40 premises in various locations throughout the Delhi NCR.

According to sources, during the search operations, a large amount of incriminating evidence in the form of hard copy documents and digital data was seized. These evidences revealed that the group made bogus purchases, large unaccounted cash expenditures, and obtained accommodation entries totaling more than 1000 crore.

The Department also discovered evidence of more than 100 crore in cash transactions in the purchase of a farm house on the outskirts of Delhi.

Munjal purchased a farmhouse in Chhattarpur where the market price of the farm house was manipulated to save tax and used black money to pay more than 100 crore in cash, which is a violation of Section 269 SS of the IT Act.

According to Section 269SS of the Income Tax Act, if the seller accepts an amount of 20,000 or more in cash from the buyer while transacting Immovable Property, a 100% penalty will be levied.

Last week, raids were carried out at the offices and homes of Hero MotoCorp promoters. Pawan Munjal’s home and office are among the locations being searched. The statements of those present at the site of the searches were recorded, and panchnama was performed.

Source: ANI