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Indian arm of Walmart to face public interest litigation over alleged illegal investments

RBR Staff Writer Published 22 October 2012

Cash and carry arm of the US retail major Walmart will face public interest litigation filed by the President of the Federation of Tamil Nadu Traders' Association seeking investigations into its investments in two Indian firms in March-April 2010.

The retail major allegedly made illegal investments of INR4.56bn (84m) in multi brand retail by camouflaging the investment as 'service sector' investments, the case will be heard by a division bench of the Madras high court on 31 October 2012.

Meanwhile, the Indian government is yet to take a stand on the necessity to order an enquiry with Reuters quoting a Ministry ofCommerce official saying that a complaint in this regard was received and forwarded to the Reserve Bank of India.

Walmart released also a statement that read, "All procedures and processes have been duly followed and details filed with relevant Indian government authorities, including the Reserve Bank of India."