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ED begins scrutiny of Walmart replies

Notices were issued to the company under Foreign Exchange Management Act

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Press Trust of India New Delhi
Last Updated : Jan 29 2013 | 5:16 PM IST

The Enforcement Directorate (ED) has begun scrutinising a set of voluminous documents recently sent to it by American retail giant Walmart as part of its reply on a probe against the company's investment in an Indian firm for alleged violations of forex laws.

The company has recently sent a detailed reply to the agency as part of communication to notices sent to it earlier under the Foreign Exchange Management Act (FEMA), official sources said.

"Walmart is cooperating with the government during this process. The central government has sought certain information and clarification which has been provided by us. We are in compliance with India’s FDI laws, and all procedures and processes have been duly followed and details filed with relevant Indian government authorities, including the Reserve Bank of India," a Walmart India spokesperson told PTI in a statement.

The company, in the reply, has detailed the RBI clearances and other transactions that it has conducted in the country, the sources said.

The ED is investigating the case on the basis of a communication sent to it by the RBI in this regard.

The agency is also expected to place these facts before the Madras High Court soemtime this month as part of its reply on a writ petition in relation to Walmart.

The agency, which has registered a case under FEMA, has also sought certain details from the Commerce and Industry Ministry to furnish it with clearances that were given to the company to route the investment in 2010 in a subsidiary of Bharti ventures via a Mauritian arm.

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First Published: Jan 29 2013 | 5:16 PM IST

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