Hero MotoCorp Chairman Faces Fraud Accusations, Shares Drop 2.5%

The Delhi Police on Monday (October 9) registered an FIR against Hero MotoCorp’s Chairman, CEO, and Managing Director Pawan Kant Munjal. According to reports, Hero MotoCorp, Pawan Munjal, and two others are named in the FIR registered at the Vasant Kunj police station.

FIR Registered in a June 2010 Case

According to sources, this FIR is related to a case from June 2010 involving Hero MotoCorp and Pawan Munjal. The case is not directly related to the ongoing investigation into money laundering that is being conducted by the Enforcement Directorate (ED) and the Directorate of Revenue Intelligence (DRI). The DRI is the investigative arm of the Central Board of Indirect Taxes and Customs (CBIC).

Hero’s Shares Drop by 2.5% Due to the FIR

Following the news of the FIR, Hero MotoCorp’s shares fell by 2.5% today, closing at Rs 2,962. During trading, they witnessed a drop of over 3%. In the past month alone, the company’s shares have declined by nearly 4%. At the same time, over the last six months, they have fallen by approximately 20%, and since 2023, they are down by 9%. The company’s shares have given almost 15% lower returns to its investors in the last year.

What Did Hero MotoCorp Say About the FIR?

Regarding the FIR, Hero MotoCorp told CNBC-TV18 that the FIR is related to a case from June 2010. There are no ongoing investigations or charges related to this matter.

Pawan Munjal’s Total Wealth is Approximately INR 29.20 Billion

According to Forbes, as of 2022, Pawan Munjal’s net worth was approximately $3.55 billion, which is roughly INR 29.20 billion. Pawan Munjal was ranked 56th on the list of India’s wealthiest industrialists by the end of 2022. At the same time, he was ranked 984th in the list of the world’s billionaires for 2022. Pawan Munjal is a father of three children: Vasudha Munjal, Anuvrat Munjal, and Supriya Munjal.

Hero MotoCorp Operates in Over 40 Countries

Hero MotoCorp is the world’s largest two-wheeler manufacturing company. It operates in more than 40 countries and has eight manufacturing plants globally, including six in India. The company holds over 50% of the market share in the Indian two-wheeler segment.