Indian probe clears Walmart

An Indian government probe has found that US retail giant Walmart’s lobbying activities did not violate domestic laws.

Walmart said it spent US$25 million on lobbying to get access to the Indian market. The retail giant says the lobbying is legal under US law. However, the opposition parties claimed it indicated bribery of Indian officials. The government appointed retired judge Mukul Mudgal to probe the lobbying activities of Walmart.

“There was no evidence regarding the involvement of any Indian official in corrupt practice or being beneficiary of Walmart’s lobbying activities here,” said a government official knowledgeable of the matter.

Mudgal declined to comment on the report citing it is confidential until presented in the parliament.

Walmart’s spokesperson said, the company cannot comment about the result of the probe as it hadn’t seen the report yet.

The US retailer is facing a separate probe over allegations that it violated Indian rules when it invested in a local retail chain in 2010, before FDI in multi-brand retail has been allowed by the government.

That investigation is likely to be completed in June, says a senior ministry official.

Walmart is confident it did not violate any investment guidelines.

“All procedures and processes have been duly followed and details filed with relevant Indian government authorities, including the Reserve Bank of India,” said Walmart’s spokesperson.

Walmart operates in India through a joint venture with Bharti Enterprises, which operates cash and carry stores. It plans to open its own retail stores once permitted by the government to make direct investments in the country.

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