Graft Inquiry: Walmart Gets Limited Reprieve Against CVC
HC says criminal complaint can’t be filed against co till next date of hearing
New Delhi: Walmart Stores Inc won a limited reprieve from Delhi High Court last week, having approached it over the Central Vigilance Commission (CVC) seeking to initiate criminal proceedings against the local unit of the retail giant for allegedly delaying an inquiry into possible bribery.
In his April 5 interim order, Justice Rajiv Sahai Endlaw said “no criminal complaint as threatened be filed against the petitioner/its officials till the next date of hearing”. The case is listed for May 5. The Story So Far
Walmart starts anti-bribery programme & investigates possible violation of US laws
Suspends CFO and legal team as part of internal probe Stalls further expansion of stores pending the probe CVC initiates probe against alleged bribery by Walmart
Bharti and Walmart split. Walmart acquires cash-and-carry business
Walmart told the court it had been cooperating with the inquiry even though it doesn’t believe CVC has jurisdiction over the matter. The court order sought to clarify this, while adding that the origin of the matter — a newspaper report – was a crucial factor.
The relevant section of the CVC Act empowers the agency to investigate complaints against executives under the Prevention of Corruption Act, it said. However, the summons of October 29, 2015, “does not refer to any complaint but toKarnatakaallegationschiefofbribe-minisry ofterIndianSiddaramaiahofficialisbyfacedpetitionerwithallega-reportedtionsinofthefavouringWallStreethisJournal.“good’son,Pri-Dr maYathindra,faciethatwouldinthe tenderednotconstitutecontracta ‘complaint’”.givenbythe state’s premier Victoria
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A Walmart India spokesperson said the company wouldn’t comment on the case. “As you may be aware, the matter is sub judice and hence it would not be appropriate for us to comment on this,” the person said. “Walmart is committed to operating in a responsible and legal manner, wherever we do business. And compliance with anti-corruption laws in the US and all international markets including India is a key priority.”
The Bentonville-based giant, which operates a chain of wholesale stores in India, was mired in corruption allegations in 2011when it emerged that its Mexico unit had bribed government employees to help the company’s biggest overseas subsidiary grow faster. The Mexico scandal prompted Walmart to review and strengthen its anti-corruption compliance programme in various countries including India. Walmart shifted its focus from doing business in the country to seeking out possible violations of the ForeignnaturallyCorruptthetenderPracticeswillbeAct,madeaUSin lawsuchthatawayprohibitsastofavourAmericanhim.Welistedsuscompaniespectthatthisfromisaclearbribingcaseofgovern-partialmentitybyofficialstheCMabroad.tohisson. We want the
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