Overview
- Multiple outlets reported on Friday that Walmart launched an internal investigation after whistleblower complaints alleging more than ₹150 crore in kickbacks tied to Flipkart employees.
- The probe focuses on staff in the smartphones and luggage and travel accessories divisions and is still establishing the exact amount and mechanics of the alleged payments.
- Reports say the alleged scheme used Flipkart’s B2B channels, including Flipkart Wholesale and the B2B sales programme, with employees accused of taking cuts from vendors in exchange for preferential treatment.
- Flipkart issued a brief statement on Saturday defending its governance and saying it addresses concerns through established processes while Walmart has not released findings or announced disciplinary action.
- This is reported to be the third Walmart investigation into Flipkart in under three years, and the case could raise regulatory scrutiny for Walmart and deepen internal pressure on Flipkart over leadership turnover and ESOP and IPO uncertainty.