India investigates Wal-Mart over stake in local unit
Wal-Mart's Indian partner, Bharti Enterprises, has also denied the allegation. We are in complete compliance of all regulations. All details have been shared with the relevant authorities, a Bharti Enterprises spokesman said.
The news came a day after Wal-Mart reported disappointing quarterly sales and as it announced internal inquiries or investigations into bribery allegations in Brazil, China and India - additions to its original probe in Mexico.
The Indian law enforcement official said the probe was being carried out under the Foreign Exchange Management Act (FEMA), which regulates domestic currency markets, including foreign direct investments and capital transactions.
The official said the agency had asked for documents on Wal-Mart's operations in India from the RBI and the Foreign Investment Promotion Board (FIPB), which clears foreign investment proposals.
The way company affairs work in India, very little is seen as a criminal offense. So even if there are some violations, companies are usually asked to pay a penalty and they are allowed to carry on with their business, said Sahani of Wazir Advisors.
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