Go Ad-Free
    My Alerts
    Moneycontrol
    Moneycontrol PRO
    HomeNewsTrendsCurrent AffairsWalmart under ED lens for alleged FEMA violation: FinMin

    Walmart under ED lens for alleged FEMA violation: FinMin

    The government said the Enforcement Directorate is probing alleged violation of FDI regulations by cash and carry chain Walmart.

    December 07, 2012 / 14:38 IST

    The government said the Enforcement Directorate is probing alleged violation of FDI regulations by cash and carry chain Walmart. "Directorate of Enforcement has taken appropriate action to examine alleged contravention of provisions of foreign Exchange Management Act, 1999, (FEMA) by Walmart, on the basis of reference received from RBI," Minister of State for Finance SS Palanimanickam said in a written reply in the Rajya Sabha.


    Also Read:


    Flipkart, Bharti Walmart under lens: Anand Sharma
    How Wal-Mart got a foot in the door of India's retail mkt


    He was replying to a question whether any enquiry is being conducted to probe allegations of foreign exchange rules violation by Walmart when it invested USD 100 million into a company owned by Bharti group in 2010. Violation of foreign direct investment (FDI) regulations is covered by the penal provision of the FEMA.

    The US retailer had invested USD 100 million in Cedar Support Services, an arm of Bharti Ventures. CPI Rajya Sabha member M P Achuthan has complained that this violated Indian rules as this investment took place when FDI in retail was barred in this country.

    first published: Dec 6, 2012 04:00 pm

    Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

    Subscribe to Tech Newsletters

    • On Saturdays

      Find the best of Al News in one place, specially curated for you every weekend.

    • Daily-Weekdays

      Stay on top of the latest tech trends and biggest startup news.

    Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347
    CloseOutskill Genai