New Delhi -- An Indian official said Thursday that India’s Cabinet will investigate allegations that Wal-Mart Stores Inc. broke rules as it lobbied to make its retail market debut in the country.
According to Manish Tewari, information and broadcasting minister for India, the cabinet has authorized a retired judge to look into Wal-Mart’s lobbying disclosures and investigate whether any of the retailer’s activities broke Indian law.
The findings will be submitted to the government within three months, according to the statement by Tewari.
Wal-Mart has spent up to $25 million since 2008 on discussions regarding its foreign investments, including in the Indian retail industry, the Press Trust of India said Dec. 9, citing company disclosure filings. The opposition has alleged that a portion of the money was spent in India, where paid lobbying is prohibited.
Wal-Mart has denied that its business interests in India have been discussed with U.S. government officials.