ramanan50

Why Walmart Spends 208 Millions to Enter India.

In Business, India, US on December 10, 2012 at 06:08

Would any one spend money without any reward?

And from whom this money is to be recovered?

The consumers, obviously.

The amount 208 millions is the money spent in the US just for lobbying.

What about the money spent in India as ‘Promotional expenses’, an euphemism for Bribes?

I understand from reliable sources that hefty sums have been paid to the MPs during the FDI voting.

Wal-Mart, the world’s largest retailer, has suspended a “few associates” at its joint venture in India amid an ongoing probe into bribery allegations.

Wal-Mart did not provide further details.

The firm is conducting an investigation into possible violations of a US law that bans US firms from paying bribes to win or retain business abroad(BBC News).

According to lobbying disclosure reports filed by Wal-Mart with the US Senate, the company has spent close to $25 million (about Rs 125 crore) since 2008 on its various lobbying activities, including on the issues related to “enhanced market access for investment in India”.

In the last quarter ended September 30, 2012 itself, the company spent $1.65 million (about Rs 10 crore) on various lobbying issues, which included “discussions related to FDI in India”.

http://timesofindia.indiatimes.com/business/india-business/Walmart-lobbying-bill-hits-Rs-125-crore-on-India-entry/articleshow/17549995.cms

Walmart

On Walmart

“The RBI has informed that matters related to Bharti Wal-Mart/Cedar Support Services Ltd and Flipkart Online Services, respectively, have been referred to the Directorate of Enforcement for further investigations,” Sharma said.

He said violation of FDI regulations is covered by the penal provision of the Foreign Exchange Management Act, 1999. Flipkart is under the scanner for allegedly flouting FDI rules which allow e-commerce companies with foreign investment to carry out only business-to-business (B2B) transactions but not business to consumer (B2C) transactions by creating complex structures that may not be permissible.

E-commerce companies with foreign investments are allowed to do wholesale trading with B2C companies that are unrelated and can do wholesale trading with a group company only if it does not exceed 25 per cent of its total turnover and is used for internal consumption. IBN Live

 

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