The Enforcement Directorate (ED) has attached three properties worth ₹24.95 crore of Pawan Munjal, CMD and chairman of Hero MotoCorp, in New Delhi under the provisions of the Prevention of Money Laundering Act, 2002.The ED initiated the investigation on the basis of a prosecution complaint filed by the Directorate of Revenue Intelligence (DRI) under section 135 of the Customs Act, 1962 against Munjal and others for illegally taking foreign exchange currency out of India.What ED said about this case According to the ED, Munjal got foreign exchange/foreign currency issued in the name of other persons and then used it for his personal expenses abroad. The foreign currency was drawn from authorized dealers by an event management company in the name of various employees and then handed over to Munjals relationship manager.The relationship manager secretly carried the foreign currency in cash/card for Munjals personal expenditure during his personal/business trips. This modus was adopted to override the limits of USD 2.5 Lakh per annum per person under the Liberalised Remittance Scheme.ED conducts searches at Hero MotoCorp chairman Pawan Munjals residence On August 1, the ED conducted search operations at the premises of Munjal and other officials of his company and seized valuables worth ₹25 crore (approx) along with digital evidence and other incriminating evidence. The total value of seizure and attachment stands at about ₹50 croreED conducts raids against Hero Motocorp Executive Chairman Pawan Munjal and some others as part of money laundering probe, say officials— Press Trust of India (@PTI_News) August 1, 2023 In March 2022, the income tax department conducted searches on the offices of Hero Motorcorp over alleged tax evasion. The department had also conducted searches at Munjals residence.The EDs attachment to Munjals properties is a significant development in the money laundering probe against him. It shows that the agency is serious about investigating the case and is determined to bring Munjal to justice.The outcome of the case will have a significant impact on Munjal and Hero MotoCorp. If Munjal is convicted, it could damage the reputation of the company and lead to a loss of investor confidence.
