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Construction : Deals | November 2012 | Source : Construction Update

India probes Wal-Mart over stake in local unit

Indian government is investigating complaints that the world's largest retailer Wal-Mart Stores Inc violated foreign exchange rules when it invested $100 million in a domestic unit owned by its wholesale joint-venture partner, Bharti Enterprises, a law enforcement official said.

Wal-Mart has denied any wrongdoing. The allegations relate to the company's complex investment through debentures -- which could later be converted to an equity stake -- at a time when direct ownership by foreign firms was prohibited.

It is said that Enforcement Directorate of India has initiated an investigation into the allegations against Wal-Mart. The Enforcement Directorate, an elite agency that falls under the Finance Ministry, investigates financial crimes.

 
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