Indian Kanoon - Search engine for Indian Law

VIBHU BAKHRU, J

1. Walmart India Private Limited (hereafter ‗WIPL') has filed the present petition, inter alia, praying that the inquiry being conducted by the Central Vigilance Commission (hereafter ‗CVC') in terms of summons dated 29.10.2015 and letters dated 16.11.2015 and 29.03.2016 be set aside. The CVC had initiated an inquiry on the basis of a news report published in The Wall Street Journal on 19.10.2015 and in other newspapers, wherein it was reported that an investigation into the allegations of corruption regarding Walmart Stores Inc.'s operation in Mexico had found certain evidence of bribery in India.

2. The principal controversy involved in the present petition is whether the CVC has the jurisdiction to conduct an inquiry under Section 8 of the Central Vigilance Commission Act, 2003 (hereafter ‗the CVC Act') on the basis of a newspaper report, which is bereft of any particulars.

Factual Background

3. WIPL is a company incorporated under the Companies Act, 1956 and owns and operates best price modern wholesale stores - twenty one in number - in nine states across India. WIPL is a wholly owned subsidiary of Walmart Stores Inc. (hereafter ‗Walmart').

―(ii) It has been pointed out that the clarification sought is as to whether Walmart India has any information from its parent Company regarding the investigation initiated by the US Department of Justice in regard to the alleged bribes paid in India by Walmart India. If so the details of all such correspondences in original to be submitted for perusal and return along with copies to be retained by the Commission.

(3) the response received to the reference of WIPL to Walmart.

9. WIPL claims that its representatives appeared before the CVC on 16.03.2016 and provided all the information sought by the CVC. In the meanwhile, WIPL had also sent a letter to Walmart requesting for certain information. In response, WIPL was informed that Walmart was examining the contents of the same. At a hearing held on 16.03.2016, the CVC expressed its displeasure on account of non-receipt of the details of alleged bribery from Walmart. The CVC sent a letter dated 29.03.2016 regarding the proceedings held on 16.03.2016. In the said letter, certain derogatory observations had been made against WIPL and, further, WIPL was called upon to provide further information. The relevant extract of the proceedings held before the CVC on 16.03.2016, as reflected in the letter dated 29.03.2016, is set out below:-