Delhi Police register FIR against Hero MotoCorp Chairman Pawan Munjal; stock slips over 3%

It is alleged that Hero MotoCorp's chairman made fake bills worth Rs 5,94,52,525 and submitted them to the Income Tax Department.

At around 1 pm, shares of Hero MotoCorp traded 3.08 per cent lower at Rs 2,942.3 apiece on the BSE, image- Pexels

Shares of Hero MotoCorp, a leading manufacturer of motorcycles and scooters, tumbled over 3 per cent to touch the day's low of Rs 2,925 apiece on Monday, October 9. The stock witnessed a fall after the Delhi Police filed an FIR (first information report) against the chairman, Pawan Munjal, and others for fraud and forgery.

It is alleged that Hero MotoCorp's chairman made fake bills worth Rs 5,94,52,525 and submitted them to the Income Tax Department.

"At the outset, the allegations as set out by the complainant herein are that the accused company no. 1 (M/S Hero MotoCorp) in collusion with accused no. 2 (Pawan Munjal) and 3 (Vikram Sitaram Kasbekar) manufactured fake month-wise bills of a total of Rs 5,94,52,525/- for the years 2009 and 2010, which said month-wise bills were signed and had the stamp of 'Hero MotoCorp Ltd' and created a false debit balance of total Rs 5,94,52,525/- in its books of accounts," the FIR read.

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At around 1 pm, shares of Hero MotoCorp traded 3.08 per cent lower at Rs 2,942.3 apiece on the BSE. The stock snapped a two-day winning streak, and the market capitalisation stood at Rs 58,807.45 crore.

Earlier in August, the Enforcement Directorate seized foreign and Indian currencies, gold, and diamond jewellery worth about Rs 25 crore apart from "incriminating" documents after raids on Hero MotoCorp executive chairperson Pawan Kant Munjal and some others.

The agency raided the residence and offices of the 69-year-old billionaire businessman, the promoter of India's largest two-wheeler automobile manufacturer, in Delhi and neighbouring Gurugram, apart from those of some other entities, as part of a money laundering investigation against them.