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