The Prime Minister’s Office has directed the Department of Industrial Policy and Promotion (DIPP) to probe the alleged “clandestine investment” by Walmart in the multi-brand retail sector.
This follows a letter from CPI’s Rajya Sabha member M.P. Achuthan to the Prime Minister recently pointing out that Walmart has already invested $100 million in the multi-brand retail sector without reporting it to the Reserve Bank of India.
Citing an answer he had received in the monsoon session, Achuthan said Walmart “masqueraded” the investment as FDI in services sector. He said in the letter that Walmart and the Bharti Group “connived together, schemed and hoodwinked the Government and the RBI”.
The PMO, Government sources said, has taken note of the letter and has asked the DIPP to investigate.
Asked if DIPP was probing the Bharti-Walmart issue, Commerce Ministry officials said the DIPP may look into the issue as the PMO has directed it to.
When contacted, a Bharti Walmart spokesperson said, “We are in complete compliance with all regulations. All details have been shared with the relevant authorities.”
However, Achuthan told Business Line that a probe by the DIPP is not enough. “Commerce Ministry apparently has helped Walmart and Bharti to reach such a deal. So, DIPP probe will be an eyewash. The Finance Ministry should probe it,” he said.