E-commerce major Flipkart has defended its governance and compliance practices following reports that parent company Walmart is investigating allegations of employee kickbacks exceeding Rs 150 crore.
In its first response to the allegations, Flipkart said it maintained strong internal controls and remained committed to ethical business practices.
A company spokesperson said Flipkart takes concerns seriously and addresses them through established procedures.
“Flipkart has robust governance processes and controls and is committed to the highest standards of integrity and compliance. We take any concerns seriously and address them through established processes. We remain committed to ensuring the highest standards of ethical conduct across our business,” a Flipkart spokesperson was quoted as saying in a report by Moneycontrol.
The statement, however, did not directly address the allegations or provide details about the reported investigation.
Walmart Investigation Continues
Walmart, which owns more than 80% of Flipkart, initiated an investigation following whistleblower complaints involving employees in the smartphones and luggage and travel accessories (LTA) divisions.
The complaints allegedly involve kickbacks exceeding Rs150 crore.
Sources cited in the report claimed that certain employees misused Flipkart's business-to-business (B2B) operations to obtain payments from vendors.
In return, the employees allegedly offered preferential treatment, including increased visibility for sellers on the e-commerce platform.
The investigation remains underway, and neither the precise nature nor the amount of any wrongdoing has been established.
The latest development reportedly marks Walmart's third investigation into alleged financial misconduct at Flipkart within three years.
An earlier investigation involving the LTA division reportedly resulted in the termination of at least three employees.
Another inquiry concerning the smartphones business found one employee responsible for misconduct, according to sources cited by Moneycontrol.
The latest allegations emerge as Flipkart faces several internal and corporate challenges.
These include departures of senior executives, employee concerns over employee stock ownership plan (ESOP) liquidity and uncertainty surrounding its proposed initial public offering (IPO).
Walmart's reported investigation adds to the scrutiny of Flipkart's internal governance and vendor relationships.
Flipkart has reiterated its commitment to integrity, compliance and ethical conduct across its operations.
However, the company has not disclosed whether disciplinary action has been initiated in connection with the latest complaints. The findings of the ongoing investigation remain pending.
