FDI policy renders PIL against Bharti Walmart futile: Centre

The Centre on Wednesday told the Delhi High Court that the PIL against Bharti Walmart Private Limited and Bharti Retail Limited for alleged violation of FDI policy in retail sector will not "survive" in the wake of the new policy on the issue.

"In the wake of the new policy on foreign direct investment (FDI) in retail sector, it (the PIL) will not survive," Additional Solicitor General (ASG) Rajiv Mehra told a bench headed by Chief Justice Darmar Murugesan.

The ASG told the bench, also comprising Justice Rajiv Sahai Endlaw, that in the changed scenario, when the FDI in retail has been allowed, the petition loses its relevance.

The counsel for scientist and environmental activist Vandana Shiva, who had filed the PIL, also echoed the view of the ASG saying "she would take fresh instructions in the wake of the new FDI policy."

Justice Murugesan, who assumed charge today as Chief Justice, then posted the matter for hearing on September 26.

Earlier, the court had issued notices to the Centre, Bharti Walmart Private Limited and Bharti Retail Limited on the plea seeking a probe against the firms for allegedly carrying out retail trading in multi-brand sector in violation of India's existing FDI policy.

The PIL alleged Bharti Walmart was illegally carrying out multi-brand retail trade despite being permitted only to carry out wholesale cash-and-carry trade here.

Cash and carry is a form of trade in which goods are sold from a wholesale warehouse and customers settle the invoice on the spot.

The PIL also alleged many established Indian firms are acting as "front" for foreign firms to give their offshore partners a "majority control and economic interest" in retail sector here.