Global retailing giant Walmart’s India joint venture with Bharti Enterprises may have violated US anti-bribery laws and India’s foreign exchange rules.
The chief financial officer (CFO) and other employees of the JV have been suspended pending investigation into the US laws’ violation. Walmart’s $100m investment in Bharti’s domestic unit may be in violation of the exchange regulations.
FDI in retail was allowed in India in September after several delays, and yesterday resulted in the halting of proceedings on the first day of parliament’s winter session, by the opposition government. [Reuters]
Bharti Walmart's CFO is also the JV’s acting legal counsel and leads the company's five-member legal team. [WSJ]