Wal-Mart bribery allegations in India

Wal-Mart is suspected to have paid thousands of small bribery payments worth millions of dollars in India, to low-level local officials to help move goods through customs or obtain real-estate permits.

The majority of suspicious payments ranging from US $200 to US$5, but when added together they totalled millions of dollars according to The Wall Street Journal report. The report also said  the federal investigators found evidence of bribery in India was widespread but relatively small payments made to local officials during the course of its high-profile federal probe into allegations of widespread corruption at Wal-Mart stores inc’s operations in Mexico.

In 2013, Wal-Mart Shelved plans to open retail stores in India by severing a joint venture with Bharti Enterprises Ltd and instead decided to become solely a wholesaler in India the report said.

Wal-Mart, who was pushing the previous UPA regime for opening of the multi-brand retail sector in India.

According to report, Wal-Mart’s massive bribery efforts is unlikely to bring in any penalty on it as its Indian operation does  not yield any profit under the provisions of the Foreign Corrupt Practices ACT of the United States. Since penalties under the FCPA are often connected to the amount of profit the alleged misconduct generated, the payments in India is unlikely to result in any sizable penalty.