The Income Tax Department has found Hero MotoCorp made more than Rs 1,000 crore bogus expenses and over Rs 100 crore cash transactions for a farmhouse in Chhattarpur, Delhi, ANI has reported.
The market price of the farmhouse was altered to save tax, and for this purpose, an amount of over Rs 100 crore was paid in cash, the news agency claimed, citing sources.
The Income Tax Department had 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 shares of Hero MotoCorp slipped over 7 per cent on Tuesday after the reports but eventually settled at Rs 2,219, down 6.68 per cent.
Notably, the I-T raids last week were carried out at two of the Hero MotoCorp offices in Delhi and Gurugram, and at the residence of the company's chairman and CEO, Pawan Munjal.
Hero MotoCorp had termed it a "routine inquiry".
"We have been informed that this is routine inquiry, which is not uncommon before the end of the financial year," the company had said.
