Hero MotoCorp denies reports about I-T Dept finding Rs 1,000-cr bogus expenses

Two-wheeler major Hero MotoCorp on Tuesday denied media reports which said that the Income Tax Department (I-T Department) is analysing Rs 1,000 crore of bogus expenses at the firm.
 
Earlier this month, the I-T Department had conducted raids at the offices and residences of promoters of Hero Moto, including Pawan Munjal. Statements of those present were recorded and a panchnama was done.
 
Responding to clarification sought by the exchanges, Hero MotoCorp said, "The allegations made in the press report are not borne out of any document that have been served on us or our internal documents. Therefore, we categorically deny the speculative press reports."
 
The company said it had provided all support and cooperation, necessary documents and data to the I-T Department officials and would continue to do so if required.
 
Also Read: Hero MotoCorp: Rs 1,000-cr bogus expenses under I-T scanner, stock plunges 7%

"As and when the tax department concludes its findings and communicates to us, we will inform the exchanges suitably. Hero MotoCorp is a law-abiding corporate, with robust internal financial controls and its financial statements are duly audited," it added.
 
Hero MotoCorp became the world's largest two-wheeler manufacturer in 2001, in terms of unit volume sales in a calendar year, and has maintained the title for the past 20 consecutive years. It has sold more than 100 million units across domestic and international markets.
 
Earlier today, sources said that the I-T Department was analysing around Rs 1,000 crore in expenses that were suspected to be bogus in the probe at Hero MotoCorp. The department was also going through digital data and various other documents as part of its probe.
 
Further, the I-T department was also probing the deal of a farmhouse on the outskirts of Delhi in which cash worth Rs 100 crore was allegedly paid.
 
Following this news, shares of Hero Moto plunged and ended 7.08 per cent lower at Rs 2,208.35 on the BSE.

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