Walmart violated RBI guidelines, says CBI | business | Hindustan Times
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Walmart violated RBI guidelines, says CBI

business Updated: Jul 19, 2013 22:33 IST
HT Correspondent
HT Correspondent
Hindustan Times

The Central Bureau of Investigation (CBI) has said US retail giant Walmart violated Reserve Bank of India (RBI) and Foreign Exchange Maintenance Act (Fema) regulations in its investment in the retail sector through the foreign direct investment (FDI) route.

“The matter was analysed which reveals violations of RBI guidelines and Fema regulations,” the CBI wrote to CPI Rajya Sabha member MP Achuthan, who had complained to the Prime Minister Manmohan Singh on the issue twice besides writing to RBI, CBI and the Central Vigilance Commission.

Walmart had invested $100 million (about Rs. 593.1 crore) in Cedar Support Service of Bharti in 2010 and it was alleged that the money was diverted to retail trade when FDI in retail was not allowed in the country.

Achuthan had first sent a letter to Singh, terming the investment illegal and seeking a detailed probe in September last year. That complaint was sent to the RBI and the ED.

“We are in compliance with India’s FDI guidelines and, as we have stated, we have cooperated with the government during this process,” said a Walmart India spokesperson.