Wal-Mart paid millions of dollars in bribes in India: report
October 19, 2015 09:48
America's multinational retail corporation Wal-Mart is suspected to have paid bribes worth millions of dollars in India, according to a media report.
In a major report, The Wall Street Journal said Wal-Mart's "suspected bribery" unearthed in India involves thousands of small payments to low-level local officials to help move goods through customs or obtain real-estate permits.
"The vast majority of the suspicious payments were less than $200 (nearly Rs 13,000), and some were as low as $5 (Rs 325), the people said, but when added together they totalled millions of dollars," the daily said.
In 2013, Wal-Mart shelved plans to open retail stores in India by severing a joint venture with Bharti Enterprises Ltd and instead decided to become solely a wholesaler there, the report said.
Walmart, who was pushing the previous UPA regime for opening of the multi-brand retail sector was also involved in lobbying before the US Congress in this regard, Congressional disclosure reports have said in the past few years.
According to the report, Wal-Mart's massive bribery efforts is unlikely to bring in any penalty on it as its Indian operation does not yield any profit under the provisions of the Foreign Corrupt Practices Act of the United States.
TOP STORIES
© 2024 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Feedback - About us - Terms of use - Grievances