Flipkart Bribed Govt. Officials? Walmart Starts Investigating Flipkart For Illegal Activities

Flipkart has landed itself in troubled waters, as evident from Walmart’s decision to set up an internal investigation to examine the alleged reports of ‘regulatory and compliance lapses’ which happened during the time when Flipkart tried to set up fulfilment centres (FCs) in India.

This investigation has hindered the progress of one of Flipkart’s biggest initiatives. Read on to know all about Flipkart’s fiasco.

Flipkart’s Plan of Logistics Park

In March 2018, Flipkart announced its plans to set up a 100-acre logistics park near Bengaluru, the first stage of which is expected to be completed by June this year. The e-commerce giant’s intentions behind the logistics firm were to reduce the costs required by the need for logistics and transport. This would also help boost the speed of the delivery of the products. The logistics firm would be spread over a 45 lakh sq ft area and was planned to be fully integrated.

Flipkart had even displayed a profound interest in the whole plan, by planning to acquire an area of 100 acres in the Doddaballapura Industrial Area, 31 km from the Kempegowda International Airport at Devanahalli. Flipkart was also given two other choices by the State Government, however, it lacked a response from the e-commerce giant.

Two months after this announcement, US retail behemoth, Walmart bought a majority stake of 77 per cent for $16 billion in Flipkart.

Walmart Initiates Investigation

Walmart has put a hold on all projects similar to the Logistics Park in Bengaluru until the lapses are addressed immediately.

Apparently, the conditions under which American companies function are quite rigorous. Flipkart, not being equipped with the necessary licenses and permits, found out a way to get them, which was paying government officials.

Sources said, “This will make them liable under the FCPA (Foreign Corrupt Practices Act). Until these issues are sorted out, the logistics park project will be put on the back-burner and no new warehouses will be announced.”

Flipkart Refutes Allegations

The whole project of the logistics firm in Bengaluru has been put on hold . on asking about the absence of progress in the project, Rajneesh Kumar, SVP & Chief Corporate Affairs Officer, Flipkart Group, contradicted the news, saying that the project is, in fact, progressing at a good speed. He also spoke about considerable progress in the logistics park in West Bengal.

He also said, “The continued expansion and investment in infrastructure will not only help us cater to thousands of new sellers, including small artisans, MSMEs and new customers, but also add to local employment and infrastructure.”