In a significant development, the Enforcement Directorate (ED) has taken action against Pawan Munjal, the Chairman and Managing Director of Hero Moto Corp.
The ED announced on Friday that it has attached three immovable properties in Delhi, collectively valued at Rs 24.95 crore, belonging to Munjal. This action has been taken under the Prevention of Money Laundering Act, 2002.
The ED's investigation revealed that Munjal allegedly obtained "foreign exchange or foreign currency" in the names of other individuals and subsequently used the funds for his personal expenses abroad.
This move by the ED marks a significant development in its efforts to address potential money laundering activities linked to the CMD of Hero Moto Corp.
“The foreign currency or foreign exchange was drawn from authorised dealers by an event management company in the name of various employees and thereafter handed over to Munjal’s relationship manager,” the ED said.
The Enforcement Directorate (ED) has stated that a relationship manager was involved in carrying foreign currency or foreign exchange, either in cash or card, secretly for the personal expenditure of Pawan Munjal during his personal or business trips.
This revelation adds a layer to the ED's investigation, suggesting that there were individuals facilitating the movement of funds for Munjal's personal use, potentially in violation of regulations.
“The modus was adopted to override the limits of US$ 2.5 lakh per annum per person under the Liberalised Remittance Scheme,” the ED said.
“The modus was adopted to override the limits of US$ 2.5 lakh per annum per person under the Liberalised Remittance Scheme,” the ED said.
The Enforcement Directorate (ED) had previously conducted search operations on August 1 in connection to Pawan Munjal and entities or individuals associated with him.
During these operations, the ED reportedly seized valuables amounting to Rs 25 crore, in addition to obtaining digital evidence and other documents that are considered incriminating.
This information underscores the ongoing investigation into potential financial irregularities and money laundering activities linked to Pawan Munjal and associated entities.
“The total value of seizure and attachment stands at about Rs 50 crore,” the ED said.
The Enforcement Directorate (ED) has initiated its case based on a charge sheet filed by the Directorate of Revenue Intelligence (DRI) against Pawan Munjal and other individuals. The charge sheet alleges that Munjal and others were involved in the illegal export of foreign exchange or currency out of India.
According to the charge sheet, an amount equivalent to Rs 54 crore in foreign currency was unlawfully taken out of India. This forms the basis for the ED's investigation into potential violations of foreign exchange regulations and money laundering activities involving Pawan Munjal and other implicated parties.
(With Agency Inputs)
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