New Delhi: The Prime Minister's Office (PMO) on Thursday ordered a probe into the deal struck between US retail giant Walmart and Indian retail major Bharti after allegations of norms violation by Communist Party of India (CPI) Rajya Sabha MP from Kerala, MP Achuthan.
Achuthan alleged that the investment deal by Walmart with Bharti violated FDI norms and he charged the US company of end-use violations. He further charged Walmart of deliberate intent to bypass rules. The PMO has directed the Department of Industrial Policy and Promotion (DIPP) to examine the charges.
On Wednesday, Trinamool Congress chief and West Bengal Chief Minister Mamata Banerjee demanded that the deal between the two companies be terminated. The world's largest retailer Walmart came under question in India for the nature and manner of its investment in Bharti retail. Achuthan raised the matter in Parliament during the monsoon session. On Wednesday, Mamata went public with a demand that the investment be annulled for alleged violation of Indian norms.
New facts emerging from a mix of sources allege that a March 2010 investment by Walmart Holdings worth Rs 456 crore in Cedar Support Services Ltd, a company that was originally known as Bharti Retail Holdings, was illegal, with the entire structure rigged in a manner that was aimed at getting around the complete bar on foreign investment in the Indian multi-brand retail sector....more
12:51 PM, Oct 11, 2012