FIR registered against Hero owner Pawan Munjal, huge fall in shares seen

Delhi Police has registered an FIR against Pawan Munjal, owner of the country's largest 2-wheeler company Hero MotoCorp. With this news, a big fall in the shares of Hero MotoCorp has also been seen in the stock market. After all, what is the whole matter?

The grip of the law has become tighter than ever on Pawan Munjal, executive chairman of Hero MotoCorp Limited, the country's largest 2-wheeler company. Delhi Police has registered a case on the complaint of promoters of Brains Logistics Private Limited. This matter is related to making fake bills and rigging transactions. With the arrival of this news in the market, there has been a huge decline in the shares of Hero MotoCorp. After all, what is the whole matter?

Delhi Police had registered a case against Pawan Munjal on 5 October 2023. A case has been registered against him under sections 120 B, 463,464, 467, 468, 471 and 34 of the Indian Penal Code. Including them, the names of a total of 5 people are registered in the FIR. This includes the company and its officers Vikram Kasbekar and Hari Gupta. Manjula Banerjee's name is also included in the FIR, who was the company auditor between 2009 and 2010.

Case of embezzlement and fraud worth Rs 5.95 crore

Actually, this case is related to making fake bills of Rs 5,94,52,525 in the name of Brains Logistics between 2009 and 2010, misappropriation of money and committing fraud. Brains Logistics says that its contract with Hero MotoCorp had expired on March 31, 2009. In such a situation, all the bills issued after that are fake. Hero MotoCorp has also been accused of tax evasion through these fake bills.

Brains Logistics Private Limited used to supply manpower on contract to Hero MotoCorp. The alleged fake bills issued in the name of Brains after the contract ended. They were stamped with Hero MotoCorp.

Hero MotoCorp owner Pawan Munjal is already facing ED investigation in money laundering case. Recently, ED had also conducted a search operation at his house and residence in Gurugram and Delhi.

Huge decline in shares

With the news of FIR being registered against Pawan Munjal around 12 noon, there was a huge fall in the company's shares. At 12 noon the company's share was at Rs 2970, which has come down to Rs 2955 till the news was updated. Not only this, the company's shares have fallen by 2.72 percent as compared to the previous close. Yesterday the company's shares closed at Rs 3038.