MUMBAI, July 19 Wal-Mart Stores Inc
violated Indian rules governing foreign investment, the Central
Bureau of Investigation (CBI), the country's top police agency,
said in a letter to a member of parliament and seen by Reuters.
The federal police agency said in the letter that according
to its analysis, Wal-Mart's investment violated Reserve Bank of
India guidelines and Foreign Exchange Management Act
regulations. However, it said violation of FEMA regulations do
not fall under its purview, so it cannot investigate the matter.
Wal-Mart, the world's largest retailer, has denied the
accusations and said on Friday it has cooperated with the
government during the investigation.
A CBI spokeswoman did not provide further details.