Hero MotoCorp Claims Rs. 1000 Crore False Expenses
Hero MotoCorp is one of the most prominent two-wheeler motorbike manufacturers in the nation. In 1984, the Honda Motor Company of Japan and the Hero Group formed a joint venture, namely Hero Honda Motors Limited. The joint venture involving India’s Hero Group and Japan’s Honda Motor Firm has developed not just the world’s largest two-wheeler corporation but also among the world’s most profitable joint ventures.
Hero Honda was the first manufacturer in India to offer four-stroke bikes, setting new benchmarks for fuel efficiency, pollution reduction, and durability. It has a well-developed distribution and service network that stretches across the nation.
During the 1980s, Hero Honda was the first firm in India to demonstrate that driving a car without polluting the roads was possible. The business debuted new bikes that set industry standards for energy efficiency and low emissions. Commuters throughout India were captivated by Hero Honda’s renowned ‘Fill it – Shut it – Forget it’ campaign, and the company sold millions of motorcycles solely on the promise of greater mileage.
Their motorcycles are now being produced in three internationally benchmarked factories. Two of these are located in Haryana, in Dharuhera and Gurgaon, respectively. At the same time, the third state-of-the-art production plant in Haridwar, Uttrakhand, was opened in April of this year. These factories have a combined capacity of 4.4 million units per year.
Today, India’s roadways are home to almost 20 million Hero Honda two-wheelers. This is nearly as numerous as the populations of Finland, Ireland, and Sweden combined. Since its start, Hero Honda has continually risen by double digits, and now, every second motorbike sold in India is a Hero Honda. Someone in India buys Hero Honda’s best-selling motorbike, the Splendor, every 30 seconds. The business sold half a million two-wheelers in a single month during the holiday season, a record in the worldwide automobile industry.
Hero Honda is always seeking to solidify its impregnable pole position in the Indian two-wheeler sector. According to the corporation, India’s shifting demographic composition increased urbanization, and rural empowerment would bring millions of new families into the economy. This would offer the necessary growth fuel to keep Hero Honda afloat for the foreseeable future. We pioneered India’s motorcycle sector, and we now should take it to the next level, says Brijmohan Lall Munjal, Chairman of Hero Honda Motors. We’ll take whatever steps are necessary to get there.
Hero MotoCorp Claims Rs. 1000 Crore False Expenses
On March 29, shares of automaker Hero Motocorp fell by more than 7% as the market responded negatively to allegations that the Income Tax Department had discovered bogus charges of Rs 1,000 crore made by the business. According to the sources, the claims connected to the fake costs were discovered during an I-T search on Hero Motocorp’s premises from March 23 to March 26. While a formal declaration is pending, it has been learned that “incriminating evidence” was discovered in physical copies and digital data.
The company stated that the suspicions were unfounded, in response to the claims. They flatly refuted the speculative news stories, claiming that the false expenditure charges are unsupported by any document served on us or our internal documentation. Shortly after the reports were released, Hero Motocorp’s shares saw a massive decline in price. At 3:15 p.m. on the BSE, the shares traded at Rs 2,206 apiece, were down 7.18 per cent from the previous day’s closing. The stock subsequently fell by 7.08 per cent to Rs 2,208.35.
Pawan Munjal is the Chairman and Chief Executive Officer (CEO) of Hero MotoCorp, the largest motorbike and scooter manufacturer in the world. Munjal’s father, Brijmohan Lall Munjal, was the company’s founder. According to Forbes, Pawan Munjal and his family have a “real-time net worth” of $3.2 billion. Honda and Hero had parted ways in 2011. Munjal then oversaw Hero MotoCorp’s global expansion. Hero MotoCorp, which is led by Munjal, distributes its goods in more than 40 countries throughout Asia, Africa, Central and South America, and the Middle East. The corporation owns eight world-class manufacturing sites. Six of the seven are in India, while one each is in Colombia and Bangladesh.
According to Forbes, the corporation has a research unit in Jaipur and a research centre in Germany. Munjal is a member of the Confederation of Indian Industry (CII) and the Society of Indian Automobile Manufacturers (SIAM) (SIAM). Munjal is also a board member at Munjal Acme Packaging Systems Private Limited, Pan Mining Private Limited, Bahadur Chand Investments Private Limited, Hero Investcorp Private Limited, Indian School of Business, Hero Future Energies Global Limited, and Rockman Industries Limited.
According to the I-T Department, Pawan Munjal purchased a farmhouse in Chhattarpur, on the outskirts of Delhi, for more than Rs 100 crore. According to the news agency, which cited sources, the current value of the farmhouse was changed to avoid tax, and a sum of over Rs 100 crore was paid in cash for this reason. Money control was unable to verify the report’s assertions independently. As per the specified clause of the Income Tax Act, if the seller accepts a sum of Rs. 20,000 or more in cash from the buyer when transacting Immovable Property, a 100 per cent penalty is assessed.
On the other side, Hero MotoCorp, the world’s largest two-wheeler manufacturer, stated on Tuesday that it would increase the ex-showroom pricing of its bikes and scooters starting April 5. The upward increase was necessary, according to the corporation, to substantially offset the impact of rising commodity costs. The business said in a statement that the price rise would be up to Rs 2,000, with the precise amount depending on the model and the market.
They inform all of their stakeholders that commerce as normal will continue. Hero MotoCorp is a law-abiding and ethical corporation that upholds the highest levels of corporate governance. According to the company’s official news release, they are giving full assistance to the authorities in keeping with this principle.
Edited by Prakriti Arora