While the IT department did not directly name Hero MotoCorp, sources in the agency claim in news reports that the release points to India’s largest two-wheeler maker.
see photosAlthough Hero MotoCorp is not named in the release, the IT department raided the company’s premises.
The Income Tax Department issued a press release on March 31, 2022 detailing its search and seizure operation relating to a “Leading Automobile Manufacturers Group”. While the IT department did not directly name Hero MotoCorp, sources in the agency claim in news reports that the release points to India’s largest two-wheeler maker. Earlier this month, the department had conducted raids at the homes and offices of some of Hero’s top management, which the company confirmed in its statement. At that time, Hero had said that it was cooperating fully with the agencies. Carandbike has contacted Hero MotoCorp for a follow-up statement and will update this piece when the company responds.
Read also: Hero MotoCorp denies reports of ‘fake expenses’ discovered by tax officials
Earlier this month, searches were conducted at the houses and offices of Pawan Munjal in Gurugram in Haryana, Delhi and some other cities.
In its statement, the IT department said it had conducted a search and seizure operation on March 23, 2022 on the automaker with a company operating chartered flights and a real estate group in Delhi-NCR covering over 35 premises. states that the agency found various incriminating documents and digital evidence indicating expenses shown for commercial purposes were not fully supported by the evidence.
This involved an expenditure of over ₹800 crore which was booked under the guise of procuring services from a specific event management unit. The IT department alleges that the unit “laundered money through layering,” which is an unacceptable expenditure under the Income Tax Act, 1961.
The 10-acre farm is reportedly a farmhouse in Delhi’s Chhatarpur area, which involved unaccounted cash transactions of ₹60 crore.
The search also found that 10 acres of agricultural land in Delhi which was bought through some paper companies and involved huge cash transactions of more than ₹ 60 crore. Without naming anyone specifically, the release said the beneficiary of the transaction is “a key person in the automobile manufacturer’s group”.
Read also: Hero MotoCorp made fraudulent expenditure of more than ₹ 1,000 crore, alleges IT department
The agency also claims that the intermediary who facilitated the said transaction admitted in his statement that a substantial part of the sale consideration was paid in cash. There are other incriminating documents said to be related to other real estate projects across Delhi where cash was received for the sale of units.
Further, the release said that the company operating the chartered flights did not identify fraudulent expenses and total income exceeding ₹50 crore. This includes rotation of funds through a doubtful NBFC and doubtful debt, layering and re-routing of funds through paper companies and claims of fraudulent interest expenditure.
Read also: Not raids but “regular inquiries”, Hero MotoCorp clarifies Income Tax department visit
0 notes
Finally, the press release said that undisclosed cash worth more than ₹ 1.35 crore was seized in the operation as well as jewelery worth over ₹ 3 crore was kept in restraint. At present the investigation is going on.
for the latest auto news And WaitFollow carandbike.com Twitter, Facebookand subscribe us youtube Channel.