The Centre on Friday submitted before Madras High Court that it would take "some more time" for the conclusion of the probe by Enforcement Directorate into alleged violations of forex laws by the American retail giant Walmart in its investment in two Indian firms.
ED has issued summons to Bharti Wal Mart Ltd officials for clarifications in connection with the documents received from the concerned companies and government departments, an affidavit filed by a top ED official said.
"..investigations which are being conducted by ED would take some more time to be concluded as the documents received from the concerned companies and the concerned government departments are being examined," ED Deputy Director Rajeswar Singh said in the affidavit.
ED has also made reference to concerned government departments to obtain material information and record relating to receipt of Foreign direct investment (FDI) by the said companies, Singh said in response to a public-interest litigation (PIL) by a traders association.
The Directorate has taken up appropriate investigation under the Foreign Exchange Management Act, 1999 (FEMA) into the alleged contravention of FEMA by Cedar Support Services Ltd, Bharti Wal Mart Pvt Ltd and Bharti Retail Ltd, relating to receipt of Foreign Direct Investment (FDI) in multi-brand retail trading by Bharti Retail Ltd, he said.
The agency was investigating the receipt of FDI of Rs 455.80 crore by Cedar Support Services Ltd and Rs 139.33 crore by Bharti Wal Mart Pvt Ltd, the affidavit said.
The probe would also go into the receipt of FDI as to whether the same was in conformity with the provisions ofSecion 6(3)(6) of FEMA read with the Foreign ExchangeManagement (Transfer or Issue of Security by a person residentoutside India) Regulations, 2000, Singh said.
Petitioner T Vellayan, President of Federation of TamilNadu Traders Association, has sought a direction toauthorities to examine, investigate or consider investment bya subsidiary of multi-brand retail company WalMart in twoIndian firms in March-April 2010.
The PIL submitted the union government had allowed FDI inmulti-brand retail on September 14 last year before which ithad been prohibited under FEMA and relevant rules.
It alleged that in March and April last year, Wal MartStores Inc, USA, through its subsidiary, in collusion with twoIndian firms, illegally invested Rs 455.80 crore inmulti-brand retail in India by masquerading it as for'services sector.'
The Centre had in November last told the Madras HighCourt that ED was investigating the alleged investment ofAmerican retail giant Wal Mart in Indian companies, inviolation of the provisions of FEMA.
When the matter came up for hearing before a divisionbench comprising Justices R Banumathi and K K Sasidharantoday, ED filed its affidavit following which the petitioner'scounsel said he has to get instructions.
At his request, the court adjourned the matter by oneweek.