[1]India is investigating Walmart 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.
A lawmaker has accused Walmart 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 Walmart," said the official, who declined to be named.
Walmart has denied the allegations since they first surfaced last month and said it is in compliance with Indian laws.
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