Wal-Mart's investment in Bharti arm as per law: Rajan Mittal
Bharti Enterprises has rejected allegations that it had violated rules in the investment by Wal-Mart Stores Inc in its subsidiary.
New Delhi: Bharti Enterprises has rejected allegations that it had violated rules in the investment by Wal-Mart Stores Inc in its subsidiary.
"(There is) no violation. It is as per the law of the land," Bharti Enterprises Vice-Chairman and Managing Director Rajan Bharti Mittal said.
The Rs 455.8 crore investment by Wal-Mart in Cedar Support Services Ltd, a subsidiary of Bharti Ventures, had come under attack from CPI Rajya Sabha member M P Achuthan, who wrote to Prime Minister Manmohan Singh last month saying it was "illegal" and flouted FDI rules.
He further said the government had also asked about it and the company has furnished details.
"We have given them (replies)...We have given our submissions to the government," Mittal said when asked to comment on Department of Industrial Policy and Promotion referring the issue to RBI.
When asked for comments about Commerce and Industry Minister Anand Sharma informing the Rajya Sabha in September that Wal-Mart had made the investment in Cedar via its Mauritius arm but the RBI had no FDI data of the same, Mittal said: "I have no idea. We have given everything what is required".
In a letter to the Prime Minister, Achuthan, a Member of the Standing Committee on IT had alleged "the entire FDI has been diverted and illegally invested by Cedar in its 100 per cent subsidiary Bharti Retail Ltd, which is carrying out multi-brand retail operations".
Stating that the fact could be verified from the audited accounts filed by Cedar with Registrar of Companies, the MP had asked the government to "undo this illegal investment immediately; initiate penal proceedings against Wal-Mart and Bharti group under FEMA".
Achuthan had further said: "Ban Wal-Mart permanently from India, including its joint venture for the wholesale cash and carry operations with the Bharti Group."