Wal-Mart case: 'Rules do not require Indian cos to disclose lobbying details'

Indian companies are not required to make any disclosures regarding their lobbying activities and the country's regulations have no provision as yet in this regard, the government said today.

A panel, appointed by the government, is already looking into Wal-Mart's lobbying activities in the US to check whether there have been any irregularities related to the retailer's entry into India.

"Lobbying in foreign countries is regulated by the laws of the country concerned.

"In the Companies Act, 1956, there is no provision relating to lobbying and Indian companies are not required under the Companies Act to make disclosures concerning this subject," Corporate Affairs Minister Sachin Pilot said in a written reply to the Rajya Sabha.

He was responding to queries on whether Indian companies are allowed to pay in foreign exchange for lobbying overseas and whether there is any limit on such payments.

Besides, there were queries on total amount of foreign exchange used by Indian companies for lobbying and the names of firms that have used foreign exchange for lobbying overseas.

In December, Pilot had said he favoured disclosures by companies and industry bodies about their representations to the government on specific policy issues.

"I think that time has come to define what is acceptable and what is not. What is legal and what is not. I think, in most countries we have that definition, but in India, it is pretty vague. It is wrong to assume that lobbying means bribery, but some people allege that it is bribery," Pilot had told PTI in an interview.

Meanwhile, the one-member inquiry panel looking into Wal-Mart's lobbying activities in the US is expected to submit its report to the government next month. The committee is headed by former Chief Justice of Punjab & Haryana High Court Justice Mukul Mudgal.

Following reports about Wal-Mart's lobbying activities among the US lawmakers since 2008 for facilitating its entry into the Indian market, the government had set up the panel.

... contd.

ALSO READ

After lull, highway projects see aggressive bid offers

Govt aims to bring down CAD to 2.5% by 12th Plan-end, says Montek

Raghuram Rajan not in favour of sovereign bond to finance CAD

Airfares: Travel agents to keep shutters down on Tuesday