Flipkart Under Investigation For Allegedly Bribing Government officials!

Must Read

Superstitions across different countries – An Overview

Some believe that a superstition is anything that people believe that is based on myth, magic, or irrational thoughts. They are beliefs that are steeped in lore or tradition, and it is usually difficult to pinpoint the exact origin. Here is a brief compilation of Superstitions which are prevalent across different countries.

1.5 Million Engineers Pass Out In India Every Year, Fewer Getting Hired [Trends]

Engineering colleges have been springing up like wild mushrooms in India in the last few years. Their number has...

World’s Most Popular Ad Slogans: A Brief List To Inspire With !

Advertisement plays an important role for companies as well as consumers world wide. It gives a seller an opportunity...

Flipkart is under the internal investigation of Walmart, which is screening the asserted records of regulatory and internal compliance failures. The investigation is primarily focused to find the possible kickbacks paid by Flipkart to establish fulfilment centres (FCs) aka the logistics park across India, particularly in Bengaluru.

This curated investigation has significantly stalled the advancement of one of the Flipkart’s magnanimous drives.

Flipkart in Tough Clutches of Non-Compliance

By the March 2018, Flipkart proclaimed its plans to install a 100-acre logistics park near the prominence of Bengaluru city, the primary stage of which is supposed to be finished by June this year. The e-commerce behemoth’s purposes after the logistics park were to lessen the costs entailed by the lack of logistics and transport facilities, enhance supply-chain performances and speed up e-commerce delivery. The logistics park is planned to spread over a 45 lakh sq ft area and was sketched to be thoroughly integrated.

Advertisements

Flipkart had even demonstrated a deep-felt interest in the whole plan, by preparing to procure a space of 100 acres in the Doddaballapura Industrial Area, which is 31 km from the Kempegowda International Airport at Devanahalli, Bangalore. The company was also granted two different options by the Karnataka State Government – Channarayapatna village in Devanahalli and Masthenahalli village in Chikkaballapura. Despite, it expected an acknowledgement from the e-commerce behemoth.

“We showed Flipkart the land parcels five months ago, but they have still not reverted on the same,” said State government sources.

Just two months after this declaration, US retail giant, Walmart acquired Flipkart by buying for over $16 billion.

Walmart sprang up the Inquiry against The Allegations 

Walmart has kept all the other projects alike to the Logistics Park in Bengaluru on hold till the regulatory slips are filed out shortly.

Evidently, the stipulations under which American companies operate are considerably stark. And Flipkart, not being furnished with the requisite licenses and grants, has spotted out an easy route to acquire them, by allegedly bribing the government officials.

Advertisements

Sources said, “This will make them liable under the FCPA (Foreign Corrupt Practices Act). Until these issues are sorted out, the logistics park project will be put on the back-burner and no new warehouses will be announced.”

Flipkart Denies Accusations

The entire magnanimous project of the logistics park in Bengaluru has been kept on hold. Upon inquiring about the lack of development in the project, Rajneesh Kumar, SVP & Chief Corporate Affairs Officer, Flipkart Group, opposed the news, stating that the project is, in action, and advancing at a stable speed. He also articulated about significant development in the logistics park within West Bengal.

Rajneesh Kumar also cited that, the sustained development and investment in infrastructure project will benefit the company by contributing to thousands of new sellers, including small artisans, MSMEs and new customers. He also emphasized on the fact that the project will also boost the local employment and elevation.

It is quite customary for Indian home-grown businesses to take on 30%-40% business risk rippling from non-adherence of regulations. In the case of stringent American companies like Walmart, however, compliance with FCPA and various anti-corruption laws is a fundamental priority that requires to be sorted out quickly, as stated by the senior General Counsel of a topmost private equity firm.

Considering all that Flipkart may have a tough time. While it may be little too early to conclude against or in the favour of Flipkart, the investigation against the Flipkart has already done the damages.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

India the 3rd Worst Economically Affected Nation by Internet Shutdowns in 2019: Report

2019 saw an increasing awareness about internet shutdowns in the Indian population due to unprecedented first-hand experience...

Amazon and Flipkart Under The Lens Of Indian Authorities For Competition Squashing Activities!

The ongoing tug of war between Offline and Online retailers in India seems to be far from over. On Monday, the Competition...

Constant Internet Suspensions In India Affecting Online Transactions and Economy Adversely

In the wake of the highly controversial and prejudiced Citizenship Amendment Act and other related legal developments such as the NRC, IT...

The Current Generation Require Technology In Class To Make The Most Of Future Opportunities

Technology is the current drive for everything. It has influenced all aspects of life, including cultures. It affects the way we live,...

Reliance Jio Offers Free Calls Over WiFi: Activate It Now

Following Airtel’s launch of VoWiFi calling in December 2019, Jio has now started rolling out VoWiFi calling, as well.

UPI Scam: A Man Loses Rs. 1.01 Lakhs While Using Paytm and Google Pay

Facebook finds it itself in the middle of its first scam of the new decade and the catalyst seems to be its...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This