MUMBAI/NEW DELHI Oct 18 An investigation by
Indian authorities into whether Wal-Mart Stores Inc
violated local investment rules in 2010 has been referred to the
country's central bank, officials familiar with the matter said.
Last year, the Reserve Bank of India asked the enforcement
directorate of the finance ministry to look into whether the
world's largest retailer broke foreign exchange rules when it
invested $100 million in an Indian consultancy that also runs
supermarkets, sources told Reuters last year.
Wal-Mart, which recently broke up its joint venture in India
and said it will independently own and operate its business in
the country, has said it has complied with Indian regulations.
The investment was made before the government opened the
supermarket sector to foreign companies.
Officials said the enforcement directorate has passed along
its findings to the central bank.
"The ED (enforcement directorate) has investigated the
Wal-Mart case and has forwarded its report to the RBI for a
decision by the RBI in the matter," said an enforcement
directorate official who is not authorised to speak to the media
and declined to be identified.
Another official said: "They have completed their
investigation and sent the RBI papers, and now the RBI will do
its own examination on whether Wal-Mart violated foreign
A Wal-Mart spokeswoman said the enforcement directorate has
not yet released its findings, and "so we have not seen the
result of its review and cannot comment."
India allowed foreign companies to set up majority-owned
supermarkets in the country in September 2012, but no company
has so far applied to enter due to lack of clarity around the
The RBI declined to comment.