In a recent development, the Enforcement Directorate (ED) has raised eyebrows with allegations against Pawan Munjal, the influential figure behind Hero MotoCorp. The ED claims that Munjal employed a rather intricate method involving the diversion of foreign exchange for personal expenditures abroad. This revelation has led to the provisional attachment of three immovable properties in Delhi under the Prevention of Money Laundering Act (PMLA).

Understanding the Accusations

Unveiling the Modus Operandi

The ED's investigation points to an elaborate scheme wherein Munjal purportedly orchestrated the issuance of "foreign exchange or foreign currency" in the names of other individuals. Subsequently, these funds were allegedly redirected for Munjal's personal expenses during overseas trips. The funds, initially acquired by an event management company in the names of its employees, were then discreetly handed over to Munjal's relationship manager.

Bypassing Limits Under the Liberalised Remittance Scheme

A crucial aspect of the ED's findings revolves around the utilization of this modus operandi to surpass the stipulated limits. Munjal is alleged to have circumvented the cap of US$ 2.5 lakh per annum per person under the Liberalised Remittance Scheme, enabling him to engage in personal expenditures that would otherwise be restricted.

ED's Search Operations and Seizures

In response to these serious allegations, the ED executed search operations on August 1 related to Munjal and associated entities. This operation resulted in the seizure of valuables worth Rs 25 crore, accompanied by digital evidence and other incriminating documents. The total value of the seized and attached assets now stands at a staggering Rs 50 crore.

Basis of the ED Case

The ED's case against Munjal stems from a charge sheet filed by the Directorate of Revenue Intelligence (DRI). The charge sheet accuses Munjal and others of illicitly taking foreign exchange or currency out of India. A significant claim within the charge sheet alleges that foreign currency amounting to Rs 54 crore was unlawfully moved out of the country.