November, the Foreign Investment Promotion Board (FIPB), cleared the proposal but out of 29 products, the
company was prevented from selling 14 items like textile products, consumer electronics, leather products, lifestyle products and food and beverages at its restaurants and cafes.
However, IKEA has approached FIPB again seeking a review of its earlier application so that it is allowed to open cafeteria at its proposed single-brand retail stores. The proposal has already been scrutinised by the Department of Industrial Policy and Promotion (DIPP) in the Commerce and Industry Ministry.
Another proposal that FIPB cleared was that of British footwear retailer Pavers England to open fully-owned stores.
Besides, a 51 per cent joint venture of American luxury clothing retailer Brooks Brothers is the third proposals that got cleared. Italian jewellery maker Damiani's plan to form a venture with Mehta's Pvt Ltd also received a nod from FIPB.
For German sportswear maker Adidas Group's arm Reebok India, it was a year trying to overcome the impact of an alleged a Rs 870-crore fraud by its former Managing Director Subhinder Singh Prem and Chief Operating Officer Vishnu Bhagat, who allegedly indulged in "criminal conspiracy" and "fraudulent" practices over a period of time.
The case is being investigated by the Serious Fraud Investigation Office and the Income Tax Department. Both the officials were arrested along with three others. As per Adidas Group, it is expected to take a hit of 70 million euro (about Rs 490 crore) in its global operating profit in 2012 on account of "irregularities" at Reebok India.
In addition to this financial irregularity, Reebok India also faced protests from its franchisees against the firm's plan to shut down one-third of its 900 Reebok stores here as a part of a restructuring strategy for the brand.
Although towards the end of the year progress was made regarding FDI in retail in India, the prolonged policy uncertainty made other global retail majors such as Tesco and Metro stay away.
The UK-based retail giant Tesco said it was looking at opening retail stores in India, but it would have to first study the "unusual" sourcing conditions for FDI in