Mudgal panel might take till June to probe Walmart lobbying

Mukul Mudgal committee, which held its fourth meeting today, sought additional details from the global retailer

The Centre’s probe into US retail chain Walmart’s lobbying activities to gain access to the Indian market could get extended till June. The government had set a deadline of April 30 to complete the probe into the matter that had rocked the winter session of Parliament.

The one-man enquiry committee headed by former Chief Justice of the Punjab and Haryana High Court Mukul Mudgal, which held its fourth meeting on Wednesday, sought additional details from the global retailer. In its previous meeting on March 22 as well, the committee had sought information from Walmart related to its lobbying activities in the US with regard to its plans to enter the Indian market.

“We discussed the reply given by Walmart and decided to ask them some supplementary questions,” Mudgal told reporters after the meeting. “It would depend on the replies given by Walmart and if at all a little extension is sought, it won't go beyond June.”

The meeting was also attended by senior officials from the Ministry of Corporate Affairs (MCA) and the Department of Industrial Policy and Promotion, among others, said an MCA official. He added the date of next meeting has not been decided yet, as it would depend on Walmart’s replies. The last meeting was attended by Walmart Asia President and CEO Scott Price, along with other representatives of Walmart and Bharti, the joint venture partners for the US chain’s cash and carry or wholesale business in India. Walmart and Bharti intend to extend their partnership for the retail foray, too.

After media reports on Walmart’s disclosures before the US Senate that it had spent $25 million on lobbying with US lawmakers over four years, opposition parties asked for an investigation. This came at a time when already there was much uproar against the government allowing 51 per cent foreign direct investment in multi-brand retail. Earlier, the investigative panel had sought information from the public on the matter.

Even after the controversy related to Walmart’s disclosures, the company has spent $1.48 million on lobbying for various issues, including on “discussions related to FDI in India” during the last quarter ended December 31, 2012. It has paid a total of $ 6.13 million on the matter during 2012.