No violations in Walmart's investment: Bharti Enterprises
30 Oct 2012
Bharti Enterprises had rejected allegations that there had been violation of rules from its side in the investment by Wal Mart Stores Inc in its subsidiary.
The Rs455.8 crore investment by Walmart in Cedar Support Services Ltd - a Bharti Ventures subsidiary has come under attack from CPI Rajya Sabha member M P Achuthan, who wrote to prime minister Manmohan Singh in September saying it was "illegal" and flouted FDI rules.
Bharti Enterprises vice-chairman and managing director Rajan Bharti Mittal denied there was any violation. He added it was as per the law of the land.
Achuthan, a member of the parliamentary standing committee on IT had alleged, in the letter that "the entire FDI has been diverted and illegally invested by Cedar in its 100 per cent subsidiary Bharti Retail Ltd, which is carrying out multi-brand retail operations".
Pointing out that the fact could be verified from the audited accounts filed by Cedar with Registrar of Companies, he called on the government to "undo this illegal investment immediately; initiate penal proceedings against Walmart and Bharti group under FEMA".
He had said further, "Ban Walmart permanently from India, including its joint venture for the wholesale cash and carry operations with the Bharti Group."