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The Enforcement Directorate (ED), probing alleged violations of forex laws by Walmart in its investment in two Indian firms, has asked Department of Industrial Policy and Promotion (DIPP) to clarify rules governing foreign direct investment (FDI) in the multi-brand retailing sector.
ED in its communication to DIPP has sought clarifications on rules and regulations that monitor FDI before and during 2010, official sources said. The agency is probing alleged ‘contravention’ of forex rules in this case under provisions of Foreign Exchange Management Act on directions of the Reserve Bank of India.
The ED decided to approach the DIPP after it studied replies sent by Walmart and its Indian partners.
