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Harley-Davidson’s Partner Investigated Over “Diversion of Funds”

Hero Motocorp Attracts Probe from India's Ministry of Corporate Affairs

The back end of a Hero machine. Media sourced from Business Today.
The back end of a Hero machine. Media sourced from Business Today.

Remember that bike range that Harley-Davidson has been working on?

Well, Harley’s partner in the project – Hero Motocorp – has been attracting the wrong end of the government’s attention. 

According to Enrico Punsalang’s coverage on Rideapart, the inspection is a result of a third party caught in a case involving a “diversion of funds.”

The news – carried via two government sources to Reuters – means that the vendor’s connection with Hero puts Hero under scrutiny from India’s Ministry of Corporate Affairs, to “see whether [Hero Motocorp] had any control over the third-party vendor.”

A hero motorbike. Media sourced from Finshots.
A hero motorbike. Media sourced from Finshots.

The attention is undoubtedly a partial result of Hero’s uncontested success in India’s markets; the company is known to be “India’s Leading Two-Wheeler Manufacturer” (via Hero’s website), and with such a high-ranking reputation casting a spotlight on the brand’s doings, transparency becomes uno numero priority. 

Hero has responded to the news by stating that they “had not received any communication from the government and could not comment.”

“We will provide all information, if and when it is sought from us by any regulatory authority.”

– Hero Motocorp, via Reuters

A view of Hero's supply chain. Media sourced from Business Wire.
A view of Hero’s supply chain. Media sourced from Business Wire.

Will the investigation into Hero Motocorp affect the company’s partnership with Harley-Davidson?

We don’t know much about the vendor’s connection with Hero, since the marque hasn’t been released; as such, we don’t know if the vendor is connected with the Harley project.

Should Hero be considered innocent (aka, not in control of this third-party vendor), we’re assuming Hero Motocorp will resume business as usual. 

*Media sourced from Business Today, as well as Finshots and Business Wire*