rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » 'CBI finds violation of rules by Walmart in Indian deal'

'CBI finds violation of rules by Walmart in Indian deal'

July 19, 2013 18:04 IST

'CBI finds violation of rules by Walmart in Indian deal'

     Next

Next

Central Bureau of Investigation has found violation of Reserve Bank of India and Foreign Exchange Management Act regulations by retail multinational Walmart in a business deal it struck with Bharti group before foreign direct investment in multi-brand retail was allowed in the country, CPI leader M P Achuthan said in Thiruvananthapuram on Friday.

The Rajya Sabha member, who took up the matter with the Prime Minister a year ago, said CBI had recently communicated to him that the business deal involved violation of regulations but expressed its inability to probe the matter further since FEMA violation does not come under its purview.

Click NEXT to read further. . .


Image: A customer shops at a Walmart Supercenter in Rogers, Arkansas.
Photographs: Rick Wilking/Reuters

     Next

'CBI finds violation of rules by Walmart in Indian deal'

Prev     Next
Prev

Next

The CBI, in its letter, said the matter was ‘analysed’ by the agency and it ‘revealed violations of RBI guidelines and FEMA regulations’.

The Economic Intelligence Wing of the agency, which looked into his complaint, said the matter was closed by it since RBI and FEMA regulations do not fall under its purview, Achuthan said in a statement.

The Communist Party of India leader said he has also taken up the matter with the Enforcement Directorate and would decide on the future course of action after getting its response.

Click NEXT to read further. . .


Image: A Walmart's distribution centre in Bentonville, Arkansas, United States.
Photographs: Rick Wilking/Reuters

Prev     Next

'CBI finds violation of rules by Walmart in Indian deal'

Prev     More
Prev

More

According to Achuthan, Walmart invested $100 million in Cedar Support Service of Bharti group in 2010 and this investment was diverted to retail trade when FDI in retail was barred in this country.

Achuthan, in a letter to Prime Minister Manmohan Singh in September 2012, wanted the matter to be investigated.        

Voicing concern over the delay in pursuing the matter, he wrote to the Prime Minister again last month and the matter was forwarded to CBI and the Central Vigilance Commission.


Image: A Walmart's distribution centre in Bentonville, Arkansas.
Photographs: Rick Wilking/Reuters

Prev     More
© Copyright 2013 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.