India launches probe against Wal-Mart - law enforcement source

NEW DELHI Fri Nov 16, 2012 12:47am EST

NEW DELHI Nov 16 (Reuters) - India is investigating Wal-Mart Stores Inc. over allegations it violated the country's foreign exchange rules, a senior law enforcement official with knowledge of the matter, told Reuters on Friday.

An Indian lawmaker has accused Wal-Mart of "clandestinely and illegally" investing $100 million in the multi-brand retail business of its wholesale joint venture partner, Bharti Enterprises, as early as 2010, before India allowed foreign companies to operate front-end stores.

"Yes, the Enforcement Directorate has initiated an investigation into the allegations against Wal-Mart," said the official, who declined to be named.

Wal-Mart has denied the allegations since they first surfaced last month and said it is in compliance with Indian laws.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.