Indian company Bharti Retail has returned the 17 properties to landlords, where it was supposed to open Easyday stores in partnership with Walmart.

The 17 pre-leased properties are located in towns including Shimla, Ramnagar, Rishikesh, Jammu, Ludhiana, Mathura, Banga, Kurukshetra, Bangalore and Roorkee.

The move comes after Walmart said it will not open stores in India unless it is able to create a ‘fool-proof compliance mechanism’.

Walmart has been accused of violating Indian laws after it said it spent US$25 million on lobbying to enter the Indian market, which it says, is legal under US law.

The Indian government conducted a probe and found no violations of domestic laws.

However, in a separate probe, Central Bureau of Investigation (CBI), said that Walmart’s US$100 million investment in Cedar Support Services, the holding company of Bharti Retail, in 2010, has violated India’s FDI rules and Reserve Bank of India’s guidelines.

Walmart is also conducting its own probe in India and has suspended some executives including its CFO and some legal team members.

Meanwhile, its India head, Raj Jain, abandoned his position without specifying the reason. He was replaced by Ramnik Narsey, formerly senior VP for Walmart International.

A spokesperson from Walmart said the company remains excited about India’s prospects.

“We are still very early in the process on FDI but are excited by the opportunity in front of us. We continue to work with the government to better understand the rules that exist for foreign direct investments.”

Walmart and Bharti Retail are partners in a joint venture that operates cash and carry stores in India.