On August 1, 2023, officials from India’s Enforcement Directorate, under the Ministry of Finance, conducted searches at three properties related to Hero MotoCorp. The searches were carried out at Hero offices in Delhi and Gurugram, as well as the home of Hero’s Chairman Pawan Munjal. These searches were part of an investigation under the Prevention of Money Laundering Act, following a complaint made by India’s Directorate of Revenue Intelligence. The complaint alleged that a person close to Munjal was involved in carrying undeclared foreign currency.

Hero MotoCorp released a statement acknowledging the visits and stating their cooperation with the agency. During the searches, financial documents and electronic data were seized for further review. As a result of these raids, Hero MotoCorp’s shares fell by over four percent during the day’s trading.

This is the third investigation involving Hero MotoCorp in the past two years. In June 2023, India’s Ministry of Corporate Affairs initiated an investigation into an alleged diversion of funds by a third-party vendor. In 2022, an income tax-related investigation also led to visits at Hero offices and Chairman Munjal’s residence.

The outcome of the current investigation and its connection to the previous cases is still unclear. As more information becomes available, updates will be provided. Additionally, Hero MotoCorp recently announced the release of a new motorcycle, the Harley-Davidson X440, produced in partnership with the American motorcycle company. Pre-bookings for the bike will temporarily close on August 3, 2023, with the price expected to rise when bookings reopen in the future.