Hero MotoCorp under Government radar for alleged Related Party Transactions
India’s largest two-wheeler manufacturer Hero MotoCorp has been served notice from MCA over corporate governance issues. As per some reports, the MCA has ordered an investigation to assess Hero MotoCorp’s relationship with a third-party vendor in a case related to alleged diversion of funds. The investigation has been ordered in the ‘public interest’ to probe the ownership structure of Hero MotoCorp and whether it controlled the third-party vendor. An inquiry by the Registrar of Companies has also concluded for a thorough investigation into the affairs of the company and linked entities — Hero MotoCorp and Salt Experiences and Management Private Limited (SEMPL) under Sections 210 (1) (c) along with section 216 of the Companies Act. The investigation will delve into the findings of the Income Tax and Customs departments regarding the two companies in relation to corporate governance matters.
