‘Give report on status of Bharti-Walmart deal’
By Express News Service | Published: 03rd November 2012 11:18 AM |
The Madras High Court has directed the Union Ministry of Commerce to file a preliminary affidavit giving a clear picture on the status of investment of Rs 456 crore by the US retail giant Walmart in Bharti Retail Limited (BRL).
A division bench comprising Justice R Banumathi and Justice R Subbiah gave the direction, when the public interest writ petition from T Vellaiyan, president of Federation of Traders Associations, came up on Friday. Additional Solicitor General P Wilson took notice on behalf of the Central government. The PIL sought a probe by RBI and Centre on the investment in BRL. Vellaiyan contended that investment in March 2010 circumvented the prohibition in Foreign Direct Investment in multi-brand retail ventures in the country. The investment violated the provisions of Foreign Exchange Management Act, he said.
Wilson questioned the maintainability of the PIL on the ground that Union Ministry and RBI were seized of the matter. The Madras High Court would not have the jurisdiction as the cause of action arose elsewhere.