Hero MotoCorp made over Rs 1k-cr bogus expenses, I-T search reveals: Report

The Income Tax Department has found that Hero MotoCorp made more than Rs 1,000 crore bogus expenses and over Rs 100- crore cash transactions for a farmhouse in Chhattarpur, Delhi, sources told ANI.

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

The search operations covered more than 40 premises spread over different locations in Delhi-NCR. On Tuesday, the company's scrip on BSE closed trading 7% lower at Rs 2,208. 

Sources told ANI that a large number of incriminating evidence in the form of hard copy documents and digital data have been seized during the search operations. These evidences revealed that the group has booked bogus purchases, made huge unaccounted cash expenditures and obtained accommodation entries, aggregating to the tune of more than Rs 1,000 crore.

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

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

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

Last week, raids were conducted at the offices and residential premises of promoters of Hero MotoCorp. The search includes the residential and official premises of Pawan Munjal. Statements of those present at the place where searches are being conducted were recorded and panchnama was done.