Bharti Walmart suspends associates facing probe: report
23 Nov 2012
India's Bharti Walmart, a joint venture between Wal-Mart Stores Inc and Bharti Enterprises Ltd, said that it has suspended a few of its 'associates' as part of a probe by the US. retailer into alleged bribery at some of its overseas units, Dow Jones News wire reported today.
Bharti Walmart is a 50:50 joint venture between Bharti Group and Wal-Mart Stores Inc for running of wholesale stores under the Best Price Modern Wholesale brand.
''We are committed to conducting a complete and thorough investigation. Walmart and Bharti have suspended a few associates pending the outcome of the investigation,'' a spokeswoman was quoted as saying.
Earlier reports in the media suggested that Bharti Walmart has suspended its chief financial officer and entire legal team in the country as part of its probe.
The Reserve bank of India has already asked the Enforcement Directorate (ED) to probe Walmart's investment in an arm of Bharti enterprises, Cedar Support Services Ltd , for alleged violations of forex laws.
Bharti Enterprises has, however, rejected the allegations that it had violated any rule in this regard. The company had said all the procedures were as per the ''law of the land.''
Earlier this month, Wal-Mart Stores Inc said that India is among the countries where it is conducting inquiries into possible violations of US anti-bribery laws.
Wal-Mart has been planning to open its own retail stores within two years, following India's decision to relax foreign investment regulations in the retail sector to permit supermarkets.
Wal-Mart Stores operates more than 10,000 retail units in 27 countries. It had reported net sales of $113.2 billion for the third quarter of 2012, an increase of 3.4 per cent from $109.5 billion in the third quarter last year.