Kraft under SEC scrutiny for irregularities in India

Kraft Foods is facing investigation by the Securities and Exchange Commission (SEC) for possible corrupt practices in India by its arm Cadbury, relating to a manufacturing plant.

Kraft Foods, the world's second largest food company, said in a regulatory filing that it received a subpoena from the SEC pertaining to an investigation under the Foreign Corrupt Practices Act (FCPA) on 1 February 2011.

"The subpoena...primarily relates to a Cadbury facility in India that we acquired in the Cadbury acquisition and primarily requests information regarding dealings with Indian governmental agencies and officials to obtain approvals related to the operation of that facility," it said.

Without elaborating details, Kraft Foods said: "We are cooperating with the US government in its investigation of these matters."

The company acquired Cadbury globally, including the Indian operations, last year for $19.6 billion.

Cadbury's India operations are spread across the states of Maharashtra, Karnataka, Andhra Pradesh and Madhya Pradesh and includes five facilities producing confectionery items.