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Wal-mart gets notice from India agency over 'violation of foreign-investment rules'

Source : ANI
Last Updated: Fri, Dec 14, 2012 05:30 hrs

Wal-Mart Stores's India unit has said that it has received a notice from a government agency as part of a probe into claims that the U.S. retailer violated the country's foreign-investment rules.

"We will be working to provide the authorities with relevant information," the Wall Street Journal quoted Wal-Mart a spokeswoman, as saying.

The Wal-Mart probe comes at a time when the company is planning to set up retail stores in India after the government in September changed foreign-investment rules to allow foreign supermarkets to set up retail outlets through joint ventures.

Earlier, foreign companies could operate only wholesale businesses in the multibrand segment.

The investigation follows a complaint by M.P. Achuthan, who wrote to Prime Minister Manmohan Singh in September to say that in 2010 a Wal-Mart unit bought 100 million dollars of convertible debentures in a company through which Bharti Enterprises controls the Easyday supermarket chain, the paper said.

Achuthan alleged that this was illegal, because he said the money was used by Bharti to fund investments in its supermarkets, the paper added.

Achuthan, however, offered no proof to back his allegation. (ANI)




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