CMDA stops Walmart arm's godown construction near Chennai

The authority has alleged that the construction site does not have necessary permissions for construcion activities

The Chennai Metropolitan Development Authority (CMDA) today sealed a site near Chennai, where global retail giant Walmart's arm Best Price, a modern wholesale joint venture between Bharti and Walmart, is constructing a Godown. The Authority has alleged that the construction site does not have necessary permissions for construction activities.

According to CMDA's Order, which was placed infront of the site, Under Section 56(2A) of Town and Country Planning Act, 1971 the Commercial Building comprising Ground Floor 1st Floor (part) is subjected to enforcement action.

Bharti Walmart Spokesperson said that the site and under-construction building belong to an independent developer. “Bharti Walmart has not received any notices from government authorities."

“We value the relationship we have with our members and remain committed to serving small retailers, hotels and restaurants and offices and institutions all over India, including Chennai, through our offerings of high quality products at everyday low prices,” said the spokesperson.

Meanwhile, CMDA's notice further stated that consequent to the notice issued on November 27, 2012, the Commercial Building is Locked and sealed and the same shall continue till the land is restored to its original condition, or till the order is revoked, it said.

"It is hereby cautioned that no third party may acquire or seek to acquire any interest in this property. Neither the owner nor the developer occupier has any right to use this building in any manner whatsoever or to tamper with the seal of CMDA. In the event of violation, the owner/developer/occupier will be liable for criminal prosecution,” said in the CMDA's notice.

It may be noted, the global retail major is already facing the heat to enter Tamil Nadu, since the state administration is opposing FDI in retail, traders, CITU, and other political parties have been showing red flag for Walmart's entry into the state. Protests were organised infront of the site by various organisations, almost every day in the last two months.

Walmart was planning to enter Tamil Nadu through its wholesale model. The company has started campaigning stating that it will act as an 'Buying Agent' for its members and treat their stores as Godowns.

Trade sources said representatives from Best Price have approached the retailers (largely mom&shop stores) with a detail presentation and started issuing identification cards to them. The company started constructing storage facilities and offices in Chennai.

As reported earlier, besides the the storage facility in Vanagaram on the suburb of Chennai, the company is also setting up a full-fledged Marketing Office at Anna Nagar, in the capital city of Chennai.