Hero MotoCorp Ended In Red After Delhi Police Logs FIR Against Chairman Pawan Munjal

Following Delhi Police's filing of a FIR against chairman Pawan Munjal and three other individuals on the basis of an alleged "forgery," Hero MotoCorp's shares closed the day on Monday 2.50% down at Rs 2960 on the BSE. The largest two-wheeler manufacturer in India, Hero, told CNBC-TV18 that the FIR refers to a case from before 2010.

Vikram Kasbekar and Hari Gupta, both named as officials at Hero MotoCorp, as well as Manjula Banerji, an auditor for the company in 2009 and 2010, are all listed as victims in the case. Manjula Banerji has also been named as a partner in Deloitte Haskens & Sells.

The FIR stated "the fake bills was never issued or submitted by the complainant company in the year 2009 and 2010 since 'Hero MotoCorp Limited' came into existence in July 27,2011 in terms of the certificate of incorporation issued by the Registrar of Companies, New Delhi," as a per a Business Standard report.

The complaint claims that the respondents conspired to "cheat and falsify the books ... and manufactured fake month wise bills debited against the complainant totaling Rs 5.95 crore) for 2009 and 2010." Following a money-laundering probe, the Enforcement Directorate (ED) recovered assets worth $3 million from Munjal and others earlier in August of this year. The agency searched 12 locations owned by the firm and its promoter and found foreign currency, cash, gold, and diamond jewellery valued at roughly Rs 25 crore.

As its contract with Hero MotoCorp expired on March 31, 2009, Brains Logistics further claims that all bills reporting debits to them beyond that date are false.