ED conducts raids at Hero Motocorp’s chairman P K Munjal’s premises in money laundering case

On August 1, 2023, the Directorate of Enforcement (ED) carried out searches at 12 locations in Delhi and Gurugram as part of a money laundering investigation involving P K Munjal, Chairman and Managing Director of M/s Hero Motocorp Limited and M/s Hero Fincorp Limited, along with employees of M/s Salt Experience and Management Pvt. Ltd (SEMPL).

The investigation, initiated under the Prevention of Money Laundering Act (PMLA), stemmed from a Prosecution Complaint filed by the Directorate of Revenue Intelligence (DRI) against P K Munjal, M/s SEMPL, Amit Bali, Hemant Dahiya, K R Raman, and others. The DRI’s complaint was based on alleged illegal export of foreign currency equivalent to approximately INR 54 Crore to various countries between 2014 and 2019, funds that were purportedly used for P K Munjal’s personal expenses.

During the ED’s investigation, it was revealed that M/s SEMPL obtained foreign exchange worth around Rs 14 Crore in the names of its officials and employees, exceeding the permissible annual limit of USD 2,50,000. Additionally, SEMPL reportedly drew significant amounts of foreign exchange and travel forex cards in the names of other employees, some of whom did not even travel abroad.

One of P K Munjal’s key associates allegedly facilitated the illegal export of approximately Rs. 40 Crore worth of foreign currency, purportedly utilized for covering P K Munjal’s personal and business expenses during foreign trips.

As a result of the search operations, the ED seized foreign currency, cash, gold and diamond jewelry (including foreign origin gold) estimated to be worth around 25 Crore, along with crucial documents, digital evidence, hard disks, and mobile devices. The searches were conducted at residential and business premises linked to P K Munjal, Hemant Dahiya, K R Raman, M/s Hero Motocorp Limited, and M/s Hero Fincorp Limited.

The ED’s ongoing investigation into this high-profile money laundering case has garnered significant attention, and further details are expected to emerge as the authorities scrutinize the seized materials. The ED is committed to ensuring transparency and accountability as it delves into the alleged financial irregularities involving one of India’s prominent corporate figures and his associated entities.