The worlds largest retailer Wal-Mart said about the inquiries of bribery allegation in Brazil, China, India and Mexico.
Then Indian investigating authority suspected and initiate thorough investigation for the joint venture of Wal-Mart and Bharti Enterprises.
Wal-Mart’s bribery allegation:
The worlds largest retailer Wal-Mart was accused of bribery allegation in Brazil, China, India and Mexico. India while going through the routine investigation procedure, said that they can not perform a fair investigation process while their own office is full of accused people. But at the same time they should not forget that the people are innocent until proven guilty. Then Indian investigating authority on the basis of suspicion initiate thorough investigation against Wal-Mart and Bharti Enterprises joint venture.
Chief financial officer and other employees got suspended by The Indian joint venture of Wal-Mart Stores as it is accused for violations of the anti-bribery laws of U.S.
It is a approach that could cause hindrance to India’s efforts to move with its domestic supermarket sector to foreign investment.
Foreign direct investment:
Wal-Mart has been proved of investing $100 million amount in it’s domestic unit secretly. The act violated foreign exchange rules and got scared of the situation. knowing that Wal-Mart is doing every possible effort to damage india’s retail market, they cannot sit quietly. they are not ready to accept any foreign retailer to enter into their territory. Thus to deal with the circumstances and save their retail market Indian opposition parties and allies led a coalition government.
This scared the Indian market and it was not ready to accept FDI(foreign direct investment) for a long time. Following a long discussion and having making the mind thinking of the greater benefit derived from foreign direct investment came to a conclusion. They end up the matter by allowing foreign direct investment in the sector to revive and help the present economic circumstances.
Thus, after struggling for long foreign direct investment came into force.