India launches probe against Wal-Mart - law enforcement source

Reuters Middle East

NEW DELHI, Nov 16 (Reuters) - India is investigating

Wal-Mart Stores Inc. over allegations it violated the

country's foreign exchange rules, a senior law enforcement

official with knowledge of the matter, told Reuters on Friday.

An Indian lawmaker has accused Wal-Mart of "clandestinely

and illegally" investing $100 million in the multi-brand retail

business of its wholesale joint venture partner, Bharti

Enterprises, as early as 2010, before India allowed foreign

companies to operate front-end stores.

"Yes, the Enforcement Directorate has initiated an

investigation into the allegations against Wal-Mart," said the

official, who declined to be named.

Wal-Mart has denied the allegations since they first

surfaced last month and said it is in compliance with Indian


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