Hero Motocorp shares jump after it refutes reports of bogus expenses
Hero share price updates: Hero Motocorp shares gained more than 3% on Wednesday, after the company denied speculative reports regarding the I-T department finding Rs 1,000 crore bogus expenses on its books.
Yesterday, the stock had plunged 7% after reports that the Income Tax Department had detected bogus expenses amounting to Rs 1,000 crore by the company. Let us look at all the details.
Hero Motocorp News
Hero Motocorp Income Tax News: Details of the raid
- An ANI report had said that an IT raid was conducted between 23 March and 26 March at the premises linked to Hero Motocorp.
- The raids were carried out at two of the Hero Motocorp offices in Delhi and Gurugram. Also, at the residence of the company's chairman and CEO, Pawan Munjal.
- A large number of incriminating pieces of evidence in the form of hard copy documents and digital data have been seized during the search operations.
- The evidence revealed that the group had booked bogus purchases. It made huge unaccounted cash expenditures and obtained accommodation entries, aggregating to the tune of more than Rs 1000 crore.
- According to ANI, the IT department detected cash transactions of more than Rs 100 crore in the purchase of a farmhouse by the CEO in Chhattarpur.
- The report also said that the market price of the farmhouse was altered to save tax and for this, an amount over Rs 100 crore was paid in cash.
Hero Motocorp News Today: Clarification by the company
"The allegations made in the press report are not borne out of any document that has been served on us or our internal documents. Therefore, we categorically deny the speculative press reports. We wish to clarify that officials from the Income Tax department visited our offices in the previous week. The company has provided all support and cooperation, necessary documents and data to the authorities and will continue to do so if required," the company said in a filing on Tuesday evening.
The company added that , "We reassure all our stakeholders that it continues to be business as usual. We at Hero MotoCorp are an ethical and law-abiding corporate, and maintain the highest standards of impeccable corporate governance. In keeping with this philosophy, we are extending our full cooperation to the authorities."
Hero Motocorp shares gained nearly 3% to hit an intraday high of Rs 2,281 per share.