CBI says Wal-Mart violated investment rules

Last Updated: Fri, Jul 19, 2013 13:05 hrs

Mumbai: Wal-Mart Stores Inc violated Indian rules governing foreign investment, the Central Bureau of Investigation (CBI), said in a letter to a member of parliament and seen by Reuters.

The CBI said in the letter that according to its analysis, Wal-Mart's investment violated Reserve Bank of India guidelines and Foreign Exchange Management Act regulations. However, it said violation of FEMA regulations do not fall under its purview, so it cannot investigate the matter.

Wal-Mart, the world's largest retailer, has denied the accusations and said on Friday it has cooperated with the government during the investigation.

A CBI spokeswoman did not provide further details.

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