The India operations of German retail giant Metro Cash and Carry as well as UK’s Tesco had also encountered similar problems.
Last year, Metro Cash and Carry faced roadblocks from the Karnataka Government, which had reportedly cancelled the APMC licence granted to it to trade in 112 notified agricultural commodities.
The Bangalore Wholesale Foodgrain and Pulses Merchants Association had filed a petition against the retailer saying that the Government violated the APMC Act and permitted the company to trade in notified commodities.
Metro had made several efforts to secure a licence to trade in agricultural commodities for the last eight years in Karnataka.
Similarly, Tesco’s plans to set up a cash and carry store in Karnataka also hit a roadblock as the State Government refused to issue the company a licence for sale of food products, including vegetables.
Tesco also has an arrangement with Tata Group's Trent in India and supplies products on a wholesale basis to Star Bazaar retail outlets.
Retail industry sources said Bharti Walmart’s activities are under the scanner as many individuals “surreptitiously acquire licences and buy goods for individual use from the cash and carry stores.” However, the rules make it mandatory that only licensed members be given the licences, not individuals.