Rajya Sabha member M.P. Achuthan has alleged an attempt to scuttle the ongoing investigation into ‘the clandestine and illegal’ investment by Walmart in the multi-brand retail sector with the help of the Bharti group.
In a letter to Prime Minister Manmohan Singh, the CPI member pointed out that though the Enforcement Director had, on the basis of a letter he had written to Dr. Singh in September last, begun a probe, there was no visible progress. Mr. Achuthan said it should not have taken the Enforcement Directorate more than a ‘couple of days’ to get at the truth of the purported FDI made by Walmart as their own records and documents containing all the information were available in the public domain. “These illegal investments to the tune of Rs.456 crore had been made by Walmart in connivance with the Bharti Group and were masqueraded as FDI in a company known as Cedar Support Services Ltd., having an income of Rs. 8 lakh and made to believe as a company engaged in services sector..
This purported investment in the services sector has been entirely and directly diverted to Bharti Retail Ltd., the wholly owned subsidiary of Cedar which is carrying out multi-brand retail operations,” Mr. Achuthan said.
