Walmart and Indian trading partner Bharti Enterprises have suspended the chief financial officer and other staff of their joint venture pending the outcome of an investigation into bribery allegations.
The company is conducting an internal investigation into the possible violation of a US law that prevents US companies using bribery to win or retain business abroad, reported BBC News.
'The suspension is a routine global practice followed in such investigations,' said an official at the Indian unit who declined to be named. 'We cannot carry out a fair investigation when the people we are investigating are in office. What we must not forget is they are innocent until proven guilty,' Reuters reported.
The investigation is expected to further fuel criticism of the Indian government's decision to allow foreign retail investment and delay Walmart's plan to open its first stores in India within the next 18 months.
It was only in September that the Indian government made a ruling to allow multi-brand foreign retailers to open up majority-owned subsidiaries.
Prior to this decision, foreign companies were only allowed to invest in wholesale operations.
Those in the Indian opposition parties and allies within the Congress party-led coalition government were opposed to allowing global giants like Walmart into the retail sector, saying to do so would drive small traders out of business.
Walmart is also investigating alleged violations of the anti-bribery law by its China, Brazil and Mexico units.
