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ED investigating Philip Morris, Indian partner Godfrey Phillips: Report

Philip Morris has for years paid manufacturing costs to Godfrey Phillips to make its Marlboro cigarettes, circumventing a nine-year-old govt ban on foreign direct investment in the industry

Cigarettes, Smoking
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A shopkeeper selling cigarettes waits in his store at a market in Mumbai, India. Photo: Reuters

Reuters New Delhi
The Enforcement Directorate (ED) is investigating Philip Morris International Inc and its Indian partner Godfrey Phillips for alleged violation of laws in India, a senior directorate source told Reuters on Thursday. The Enforcement Directorate has been looking into both the companies and the scope of the investigation is much broader than the alleged foreign investment law violations highlighted in a Reuters story published on Wednesday, the source said.

Philip Morris has for years paid manufacturing costs to Godfrey Phillips to make its Marlboro cigarettes, circumventing a nine-year-old government ban on foreign direct investment in the industry, Reuters reported based on