Just when you thought it was safe to come up for air, Harley Davidson could be involved, merely by association, with an official investigation by Indian authorities into Hero Motocorp for some shenanigans with an alleged misappropriation of funds…whatever that means.
Harley Davidson have entered a collaborative partnership with Hero Motocorp of India to produce motorcycles for that market and are soon to release the X440, however the Indian Government have been scrutinising Hero with increasing intensity over the last year and it brings into question the relationships the company has and what deals are being done and potentially the future associations too.
Hero were subject to a government tax investigation but was quickly dismissed as merely a routine check of the company finances, but now with this second investigation into diversion of funds and relationships with third party vendors…should this really be the partnership H-D should be involved in?
This from Reuters:
India’s Ministry of Corporate Affairs has ordered an investigation to assess Hero MotoCorp’s (HROM.NS) relationship with a third-party vendor in a case related to alleged diversion of funds, two government sources told Reuters on Thursday.
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, said the two sources, who are privy to the internal government directive.
For their part; Hero states: “We will provide all information, if and when it is sought from us by any regulatory authority,”
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