New Delhi, September 23, 2012
Attacking the Congress-led UPA government on the issue of allowing FDI in multi-brand retail, BJP on Sunday said the party had opposed the measure when NDA was in power. Senior BJP leader LK Advani said 'leading' Congress leader Priya Ranjan Dasmunshi in December 2002 had said bureaocrats were being pressurised by multi-national retailers even when a group of ministers and a task force of the Planning Commission on employment had rejected FDI in retail.
"Dasmunshi had said that through bureaucrats multi-national retailers are continuously putting pressure on the government to take this anti-national decision of allowing foreign direct investment in retail trade," Advani said on his blog.
He said when Dashmunshi raised this issue in Parliament, then commerce and industry minister Arun Shourie immediately stood up and said that as per the existing policy since 1997 foreign direct investment in retail trade is not permitted.
Advani also referred to the reported unrest brewing against America's largest retailer Walmart in various US cities at a time when the government here was "rolling out the red carpet" for it.
Quoting author and financial expert S Gurumurthy's article, he said that on September 14 when Prime Minister Manmohan Singh rolled out the red carpet for Walmart, the same day "New York City shut Walmart out".
He also referred to a web-based newspaper which carried a story on how Walmart displaced nearby small businesses the day FDI in retail was notified.
"Weeks ago, on June 30, over 10,000 people, shouting Walmart = Poverty, marched through Los Angeles against Walmart stores," Advani said quoting Gurumurthy.
He also quoted a New York Times report on how Mexico has become the second largest country for Walmart after USA in terms of number of stores.
Local unions oppose Walmart's plan to open store in New York
Updated: Saturday, September 22, 2012, 14:43 [IST]
Posted by: Shubham Ghosh
New York, Sept 22: World's largest retailer Walmartwas opposed once again from opening a big-box store in the Big Apple by the local unions, said an agency report. However, unlike in India where several political parties are opposing the government's decision to welcome big retailers, fearing that it will only threaten local stored, it is mainly the business model of the Walmart that has kept it away from big cities, said the report.
Walmart, the world's third largest corporation and considered the largest private employer in the world with over two million employees, has over 4,000 stores in the US alone, although a few of them are located in the big cities. There is no Walmart unit in New York or within the limits of Washington DC but several sprawling Walmarts are located within 40 km in the adjacent suburbs of Maryland and Virginia.
According to the report, the Walmart, of late, has been looking for smaller locations in urban areas including New York, San Francisco and Washington. The first of the six Walmart departments in Washington is set to be set up by the end of this year.
In New York, however, the giant retailer withdrew from a project called Gateway II, which is being developed by Related Companies in Brooklyn after local unions protested against the idea of the corporation entering the urban areas, a leading daily in New York said last week.
The protesters were happy over Walmart's withdrawal, saying even the giant firm could not match the united resistance of the people of New York. However, Walmart sources said that they still had the plan to open a store in New York. They said most people of New York wanted them just like the case is inWashington as it would be convenient for the local residents to reach the stores if they were opened in the cities instead of faraway locations.
Earlier, the Wall Street Journal reported that the giant retailer expected to open its first retail store in India in the next two years after the Indian government decided to allow in foreign direct investment in multi-brand retailers. Chief executive of Walmart Asia Scott Price said he was confident about their ventures in India and said he did not believe that infrastructure here was not suitable to modern retail.
OneIndia News
Walmart hits a wall in New York
In the US alone it has more than 4,000 stores, but only a handful in the big cities. There is none so far in New York or within the city limits of Washington DC, but there are dozens of sprawling Walmarts within 40 km in the surrounding suburbs in Maryland and Virginia.
But of late Walmart has been looking for small locations, around 20,000 square feet, just a fraction of its typical 150,000 to 195,000 square feet stores in the suburbs, in urban areas including New York City, San Francisco and Washington.
The first of the six Walmart stores in the national capital are set to open by year-end much to the delight of Washingtonians who don't mind driving out 30-40 km to "Save Money. Live better" as the 50-year old chain known for its rock bottom prices advertises.
However, in New York, Walmart last week withdrew from a project, known as Gateway II, being developed by Related Companies in Brooklyn after local unions, some members of the City Council and community groups raised an alarm at the idea of the retailer's gaining a foothold in the city, according to the New York Times.
"Walmart's withdrawal from Gateway II shows that when New Yorkers join arms, even the world's richest retailer is no match for them," Stephanie Yazgi, a spokesperson for Walmart Free NYC, was quoted as saying.
But Walmart, in a statement, made it clear that it was still interested in opening a store in the city: "Two things remain constant: most New Yorkers want us here, and we remain interested in providing more convenient access to Walmart for local residents."
Meanwhile, the Wall Street Journal reported from Hong Kong that Walmart expects to open its first retail stores in India in the next two years after New Delhi's decision to allow foreign multi-brand retailers to expand their footprint.
"We will commit to retail in India," Scott Price, chief executive of Walmart Asia, told the Journal in an interview. "But this idea that the gates have been opened and there's going to be a flood (of investment) is overwrought."
Price said he did not believe infrastructure in India "is an obstacle to modern retail"
Rescind notification on FDI in retail, demands CPI (M)
Experience shows that procurement by MNC retailers does not benefit small farmers’
Taken from Newspaper Hindu Business Line published today, link given below the news item
The Communist Party of India (Marxist) has strongly opposed the policy notification on foreign direct investment (FDI) in retail trade, despite widespread opposition.
A Polit Bureau statement issued by the party said that by this policy announcement, the Manmohan Singh government had taken the single biggest step of destroying the livelihood of those engaged in retail trade. The party said it would resolutely wage a struggle to get this anti-national decision rescinded.
The party said the rules announced by the government for FDI in multi-brand retail trade were designed to serve the interests of multinational companies such as Wal-Mart, TESCO and Carrefour. The investment floor of $100 million (Rs. 550 crore) is insignificant for giant multibillion-dollar retailers.
The restriction that foreign retail outlets should be in cities with a population of over 10 lakh was irrelevant as such cities were the very urban centres that the MNCs intended to access as they were the most lucrative segment of the market. Furthermore, the rules provided that in States/Union-Territories that do not have cities having a population of more than 10 lakh, foreign retail outlets may be set up in cities of their choice. Thus, foreign supermarkets could be set up in all parts of the country and in a wider range of urban centres, the statement said.
The condition for making at least 50 per cent of the investment in ‘backend’ infrastructure was being cited to argue that this would lead to more cold chains and other logistics, benefiting the farmers. International experience had, however, shown that procurement by MNC retailers did not benefit the small farmers. Over time, they received depressed prices and found it difficult to meet the arbitrary quality standards.
“That the government is bent upon promoting FDI in retail at the cost of domestic interests is clear from the dilution of the conditions set for FDI in single-brand retail. Earlier, the rule was that for FDI above 51 per cent in single-brand retail, there was a mandatory sourcing of at least 30 per cent of the value of products sold from Indian ‘small-industries/village and cottage industries.’ Now this has been diluted. It is stated that instead of ‘mandatory sourcing,’ the sourcing may ‘preferably’ be done from small and medium enterprises. Further, ‘the definition of small industries has also been done away with’,” the statement said.
Wal-Mart, others seek US govt help on India plans
PTI | Jul 29, 2012, 12.33PM IST
News published in Times of India for which link given below the news
WASHINGTON: Amid growing political opposition in India for easing of foreign investment norms in retail and other sectors, US-based companies like Wal-Mart and Prudential Financialare lobbying hard with their own lawmakers here to garner support for their Indian business expansion plans.
As per their latest lobbying disclosure reports filed with the House of Representatives and the Senate, the US-based companies and industry groups spent millions of dollars since the beginning of this year towards lobbying on issues includingFDI in India, changes in Indian taxation framework and various other trade-related matters.
Wal-Mart Stores, which has been trying to set multi-brand shops in India for a long time, spent nearly $1.5 million on lobbying in the last quarter ended June 30, 2012 on various issues, including matters "related to FDI in India.
http://timesofindia.indiatimes.com/business/india-business/Wal-Mart-others-seek-US-govt-help-on-India-plans/articleshow/15251949.cms
PIL against Bharti Walmart, Delhi high court seeks response
TNN | Jul 12, 2012, 03.38AM IST
Published in newspaper times of India
NEW DELHI: The Delhi high court on Wednesday sought replies from the Centre, Bharti Walmart Private Limited and Bharti Retail Limited on a plea for a probe against the firms for allegedly carrying out retail trading in multi-brand sector in violation of India's FDI policy.
A bench of acting Chief Justice AK Sikri and Justice Anil Kumar issued notices to the Centre and the firms on a PIL filed by scientist and environmental activist Vandana Shiva.
The PIL alleged that Bharti Walmart was illegally carrying out multi-brand retail trade despite being permitted only to carry out wholesale cash-and-carry trade in India. In cash-and-carry trade, goods are sold from a wholesale warehouse and customers settle the invoice on the spot in cash and carry the goods.
http://timesofindia.indiatimes.com/business/india-business/PIL-against-Bharti-Walmart-Delhi-high-court-seeks-response/articleshow/14831726.cms
UPDATE 1-Shareholder sues Wal-Mart to get Mexico bribery documents
Indiana pension fund wants unredacted records
* Fund says redactions are "unjustified"
* Says whistleblower documents confirm NYT report
By Nate Raymond
Aug 16 (Reuters) - An Indiana union pension fund that owns shares in Wal-Mart Stores Inc has sued the company to gain access to thousands of internal documents related to allegations that a Wal-Mart subsidiary bribed Mexican government officials.
The complaint is the latest challenge to Wal-Mart following a report by The New York Times in April that said Wal-Mart had found evidence its Mexican subsidiary, Wal-Mart de Mexico, allegedly paid bribes to facilitate the awarding of store permits. The paper at the time reported the company's corporate headquarters stifled an internal probe into the allegations.
Investors in light of the Times' article sued Wal-Mart and its board of directors in Delaware's Court of Chancery. The lawsuits accused the company's officers and directors of breaching their fiduciary duties to Wal-Mart and its shareholders.
The latest lawsuit, also filed in the Delaware Court of Chancery, said the company had made a "woefully deficient" production of documents following an earlier out-of-court demand. What documents were produced were "so heavily redacted," or blacked out, they were nearly worthless, the pension fund said.
The complaint, made public Thursday, is itself redacted. Wal-Mart was given three days to redact the complaint, which was filed Monday.
"Wal-Mart's overuse of redactions is unjustified," the Indiana Electrical Workers Pension Trust Fund IBEW said in the complaint.
The lawsuit also said an unidentified whistleblower had mailed documents to the fund's lawyers "substantiating numerous facts" in the Times' article related to bribes paid by Wal-Mart de Mexico, or WalMex.
The whistleblower's documents include e-mails from individuals involved in a 2005-2006 internal investigation at Wal-Mart, the complaint said.
Officials at Wal-Mart did not respond to a request for comment after normal business hours.
Wal-Mart, which is engaged in an internal investigation, has said it is cooperating with the U.S. Department of Justice and the Securities and Exchange Commission in their own probes.
"Walmart has produced thousands of pages of documents, in compliance with the Delaware rules," Theodore Boutrous, a lawyer for Wal-Mart, said in a statement. "We will respond to this complaint in due course."
Anticipation for the Indiana union pension fund's complaint had mounted after Delaware Chancellor Leo Strine, the court's top judge, declined in July to name two other pension fund shareholders as lead plaintiffs in the consolidated litigation.
Strine at the time criticized those funds, the California State Teachers' Retirement System and New York City's public pension funds, for basing their lawsuits on The New York Times report rather than conducting their own investigations.
The judge at the time noted the Indiana fund had, by contrast, demanded that Wal-Mart's board provide it access to the company's books and records.
But the Indiana fund, which is the pension fund for the local arm of the International Brotherhood of Electrical Workers, said in its complaint that nearly half of 3,474 pages of documents Wal-Mart produced in response to its demand were entirely blacked out.
The lawsuit seeks an order requiring Wal-Mart to permit inspection and copying of all of the books and records the plaintiff demanded.
The case is Indiana Electrical Workers Pension Trust Fund IBEW v. Wal-Mart Stores, Inc., Delaware Court of Chancery, C.A. No. 7779-CS
| Notice to Bharti-Walmart, Bharti Retail over suit on FDI violation | |||||||||||||||||||||||||
| BS Reporter / New Delhi Jul 12, 2012, 00:27 IST American retail giant Walmart and its Indian joint venture partner Bharti Enterprises came under scrutiny today over a public interest suit that alleged violation of multi-brand trade norms. Currently, Foreign Direct Investment (FDI) is not allowed in multi-brand retail. The Delhi High Court sought replies of the Centre, Bharti-Walmart and Bharti Retail on a plea for a probe against the firms for allegedly carrying out retail trading in the multi-brand sector in violation of India's existing FDI policy. The court issued notices on the basis of the suit filed by environmental activist Vandana Shiva. It says Bharti-Walmart is illegally carrying out multi-brand retail trade despite being permitted only to carry out wholesale cash-and-carry, or wholesale trade in the country. The PIL said: "This instant case seeks to expose how many established Indian companies are actually fronting for foreign trading companies that have partnered with them for setting up companies in India for the purpose of carrying on trade, so as to give the foreign partner majority control and economic interest in the Indian retail sector, thereby circumventing the FDI prohibition of multi-product trading in the retail sector." Senior lawyer Pinky Anand, representing Shiva, while speaking to Business Standard, alleged Bharti Walmart was believed to be directly or indirectly carrying out multi-brand retail business in India even as it did not have the permission for it. She further alleged Easyday stores were indirectly being run by the joint venture between Walmart and Bharti. “We have neither seen the petition nor received any notice from any court,” a Bharti -almart spokesperson said in a statement. A spokesperson of the Bharti group, which runs Easy Day stores, said: “We haven’t received any such notice and would therefore be unable to offer any comment.” Bharti-Walmart is a 50-50 joint venture formed in 2007, and it operates cash-and-carry, or wholesale outlets in India. Walmart is waiting to open supermarket stores across India once FDI rules of the country permit multi-brand retailing. Currently, Bharti-Walmart runs 17 cash-and-carry stores in India, where 100 per cent FDI is permitted. Bharti Retail, a wholly-owned subsidiary of Bharti Enterprises, operates 187 neighbourhood stores under the Easyday brand. Walmart provides back-end support for these stores, as that is permitted under the FDI guidelines. While the first Best Price Modern Wholesale, Bharti-Walmart cash-and-carry store, was opened in 2009, Easyday made its debut in 2008. It is learnt that once FDI is allowed in multi-brand retail, the Easyday stores may be run by Bharti-Walmart. The petition, referring to a response received under the Right to Information Act, said the Department of Industrial Policy and Promotion had not granted any licence to Bharti or Walmart or any other company to set up Easyday stores in India. “Union of India permitted FDI only in the cash-and-carry wholesale sector in India, without implementing appropriate checks to ensure that such companies are not able to intrude the multi brand retail sector," it said.
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Andhra Pradesh: Walmart to come in Hyderabad
Hyderabad, Mar 23: Walmart is all set to make its debut in Hyderabad, Andhra Pradesh by opening a wholesale retail outlet at Shivrampally near the international airport.
"The company has acquired around two acres of land adjacent to the PVNR expressway and has already begun work at the site," said sources.
According to sources, this is the third Walmart the state will have as it already has two stores one at Guntur and other at Vijayawada.
Meanwhile, Bharti Retail Pvt Ltd, the retail arm of the Sunil Bharti Mittal run Bharti group will also venture into the market and come up with its retail outlets
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