Govt examining Wadia's complaint against Danone: Dua

New Delhi, Feb 2 (UNI) The government is examining a complaint filed by Britannia Chief Nusli Wadia against French food major Danone for alleged violation of Foreign Investment Regulation Rules for enhancing Danone stake in Wadia's controlled Britannia.

''We have received a letter from Mr Wadia alleging that Danone violated stipulation of Press Note 1 of 2005 on foreign investment and foreign exchange regulations, which is being examined with all seriousness,'' Ministry of Commerce and Industry's Department of Industrial Policy and Promotion Secretary Ajay K Dua said.

The government after carefully going through the allegations laid against the French company would investigate the matter and take necessary action, Mr Dua said after giving the inaugural address at a summit on India's Retail Revolution organised by Assocham.

Communist Party of India Secretary D Raja said Left parties have already warned the government that retailer MNC like Wal-mart should not be permitted to enter India even through a joint venture partner as its track record in America and other countries has not been held in good stead.

''Wherever this company has gone, it has wiped out the domestic retailers and ditched and deceived its joint venture partner for ulterior gains by adequately accessing the market concern and therefore such joint ventures need to be discouraged. This is what we have advised the ruling government and hopefully it favourably concedes the Left's demand,'' said Mr Raja.

He said retail was a very sensitive issue just like SEZs and therefore the Lefts would continue to oppose it until policy measures are adopted to suit the domestic industry.

Dr Dua clarified that retail has become a profitable venture because of opportunities and perception that is being built by corporates and not by a particular policy of the government.

He hoped that as the times progress, the organised retail would grow manifold in the countryside and beyond metros because of sky rocketing real estate prices in metros and large towns which discourage investors to park their money and encourage them to go beyond metros and that is why its future growth will remain to be there.

Assocham Past President Anil K Agarwal sought opening up of retail to multiple brands in a phased manner, arguing that the domestic industry needs minimum three to four years to take on the global competition.

He allayed fear that the entry of MNCs in retail will wipe out domestic kirana shops, contending that such outlets will also simultaneously grow and become a part of the supply chain.

UNI