In the past a
probe
against Walmart was ordered by Indian government to ascertain any
market access lobbying and foreign direct investment (FDI)
violations. However, the mandate of this probe was still not clear.
Now as per media reports the probe against Walmart
may include ascertainment of the alleged beneficiaries of the
payments made while engaging in industrial lobbying. As per the
company the lobbying was made in US for the purposes and territorial
jurisdictions of US alone. The company has alleged that it did not
utilise any portion of the amount for its Indian business.
The crucial question that has to be ascertained by
the investigation officer is whether any portion of the lobbying
expenses have been utilised in India and used for the purposes of
influencing the decision on FDI by Indian government.
If it is found that Indian entities or
individuals were involved in the alleged lobbying expenses then the
other terms of reference that are being finalised would be looked at.
The government would also look at possible violations of Indian laws
including the Prevention of Corruption Act. The Enforcement
Directorate is also investigating separately if Walmart has violated
the provisions of the Foreign Exchange Management Act by investing in
an Indian entity even before foreign direct investment was allowed in
the sector.
As on date many e-commerce companies, whether Indian
or international, are not complying with e-commerce
laws and regulations of India as well. Legal experts have
been suggesting that e-commerce regulations must also be enforced
rigorously against both national and international e-commerce
players.
