Bharati Enterprises’ Vice-Chairman and Managing Director Rajan Bharti Mittal’s recent statement that the company had given “everything required” to the Reserve Bank of India (RBI) on its retail joint venture with US-based Walmart, has irked the Communist Party of India (CPI).
Contesting Mittal’s statement, M.P. Achuthan, a CPI Member of Parliament, has written to RBI Governor D. Subbarao demanding a copy of the documents filed by Bharti, Walmart and Cedar Support Services Ltd (a unit of Bharti’s) with the RBI.
Seeks Action
Achuthan had earlier complained to Prime Minister Manmohan Singh against the Bharti-Walmart venture. His complaint resulted in a Government probe on the deal.
He said, in response to his question in the Rajya Sabha, Union Commerce Minister Anand Sharma had said that the RBI did not have any record of Walmart’s investment in Cedar.
“Surprisingly, both Walmart and Bharti have claimed that they are in compliance with all regulations and have filed all statutory returns,” Achuthan said in the letter, quoting Mittal.
He urged the RBI Governor to clarify whether the banking regulator had indeed received the documents. He said action should be initiated against Walmart for violating the Foreign Exchange Management Act regulations.
“As a punitive measure, Walmart should be banned from making any investment in our country for cheating the authorities,” Achuthan added.
The PMO had recommended a probe against Walmart on Achuthan’s complaint. There were also reports that the RBI had asked the Enforcement Directorate to probe Walmart’s investments in India. The Opposition parties have threatened to challenge any amendment to FEMA rules.