The 77% stakeholder in the e-commerce giant Flipkart, Walmart is now investigating charges of corruption against allegation on graft at Flipkart warehouses.

As per Hindu BusinessLine report, Walmart realized that Flipkart warehouses did not have the necessary licenses and permits, and in some cases, government officials were paid off to get them.

The report added, “This will make them liable under the FCPA (Foreign Corrupt Practices Act). Until these issues are sorted out, the logistics park project will be put on the back-burner and no new warehouses will be announced.”

Flipkart’s Logistics Park Strategy

Flipkart had announced it’s plan to set up a 100-acre logistics park near Bengaluru in the March 2018 which was estimated to be completed by June 2019.

The e-commerce giant believed that this logistics park would help them improve supply chain efficiency and reduce costs by deploying mechanized warehousing, acting as a freight aggregation and distribution hub, and by leveraging technology for intelligent transport systems.

Later, the company also announced an 80 acred logistic center in Kolkata to fulfill its needs of delivering in the east and northeast India.

These hubs were predicted to save 20% of the company’s logistics cost by catering its delivery needs through smaller fulfillment centers inside huge logistics parks.

Flipkart Refutes Allegations.

While there is a news of the whole project of the logistics firm in Bengaluru put on hold, the SVP and Chief Corporate Affairs Officer of Flipkart Group, Rajneesh Kumar contradicted the news saying that the project is progressing at a good speed with a mention of considerable progress in the logistics park of West Bengal also.

He also said, “The continued expansion and investment in infrastructure will not only help us cater to thousands of new sellers, including small artisans, MSMEs, and new customers but also add to local employment and infrastructure.”