Govt refutes 'clean chit' reports on Hero MotoCorp probe: 'No final conclusion should be drawn'

The Ministry of Corporate Affairs (MCA) on Monday clarified that no final conclusions should be drawn from the probe into the affairs of Hero MotoCorp Limited and Salt Experiences and Management Private Limited (SEMPL), refuting reports that suggested the company had been given a clean chit.

The ministry had ordered an investigation into the two companies in June 2023. The probe was carried out through the Office of Regional Director (Northern Region) and a report was submitted to the central government, the MCA said in a statement.

"The report is under examination and no final conclusion should be drawn in this matter at this stage," the ministry said.

The clarification comes after a report by Moneycontrol claimed that the MCA probe had found no violations of corporate governance or fund diversion by Hero MotoCorp. The report, quoting government sources, said that the probe had been finalised and did not call for any further action against the two-wheeler manufacturer.

“No further action has been suggested. The investigation report has almost given a clean chit to the automobile manufacturer. Violation of corporate governance norms and fund diversion is not there in the findings of the report," Moneycontrol quoted a government source as saying.

Hero MotoCorp has been under scrutiny over governance standards since 2023, following an investigation by the income-tax department. The MCA’s probe stemmed from tax searches conducted in March 2022 at multiple premises linked to the company. The raids were part of an inquiry into alleged tax evasion, raising concerns over financial mismanagement and corporate governance violations.