Ministry of Corporate Affairs asks to investigate Hero MotoCorp: Report

The country’s Ministry of Corporate Affairs has asked for an investigation to gauge Hero MotoCorp’s correlation with a third party vendor in a case pertaining to alleged diversion of monies, Reuters reported, citing two government sources.

The investigation has been initiated in “public interest” to examine the ownership structure of the country’s largest motorcycles maker, and whether it controlled a third-party vendor, the newswire reported, citing two persons in the know.

In a statement, the company told the newswire that it had not got any directive from the government and could not offer comments on the matter. The company spokesperson said that they would offer all information, if sought, from any regulatory body.

The ministry did not offer a timely response to the newswire’s email queries. The company shares fell 4.2% on Thursday afternoon.

Separately, Hero MotoCorp was under the scanner of income tax authorities last year.

HeroMoto Corp has issued a clarification on the media reports, saying that the Company has not received any communication from MCA with regard to the media reports dated  June 15, 2023 and hence cannot comment on the same. 

“We will provide all information, if and when it is sought from the Company by any regulatory authority,” it stated.