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LATEST NEWS UPDATES | PIL against Walmart for reaching end customers via Bharti Retail

PIL against Walmart for reaching end customers via Bharti Retail

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published Published on Jul 12, 2012   modified Modified on Jul 12, 2012
-The Economic Times

A social activist has filed a case in the Delhi High Court alleging that the US-based Walmart is carrying retailing to the end consumer through Bharti Retail, a Bharti Enterprises group company. 

The high court has sent notices to Bharti Walmart, Bharti Retail as well as the central government, seeking their replies on the petition filed by environmental activist Vandana Shiva. Bharti Walmart is a 50:50 wholesale retail joint venture between Walmart and Bharti Enterprises. The public interest litigation filed by Shiva alleged that even though Bharti Walmart is only permitted to sell its wares to other retailers and businesses, it is carrying out retailing to end consumers through Bharti Retail, a 100 per cent-owned entity of Bharti Enterprises. It's unclear what Shiva, who is known to have campaigned against BT cotton in the late 1990s, has submitted to the court to support her allegations. "We haven't received any such notice and would, therefore, be unable to offer any comment," a Bharti spokesperson said. Since forging a wholesale alliance in 2007, Bharti Walmart is operating 17 cash-and-carry stores in India. 

Bharti Enterprises' retail venture operates more than 180 Easy Day-branded supermarket and convenience store format chains in several cities and that venture not only sources products from Bharti Walmart but also gets technological and supply chain expertise from the world's largest retailer. 

India currently allows fully-owned overseas subsidiaries in the cash-and-carry segment. The government may allow foreign supermarket operators to own controlling stakes in ventures that could directly cater to India's burgeoning middle class, something the cash-and-carry stores are not allowed to do. In recent years, Shiva has been part of a anti-organised retail campaign that opposes any corporate investment in retail saying such ventures would drive many of the local mom-and-pop stores out of business.

The Economic Times, 12 July, 2012, http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/pil-against-walmart-for-reaching-end-customers-via-bharti-retail/articleshow/14828978.cm


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