India's Enforcement Directorate investigating Philip Morris, Godfrey Phillips-source

Godfrey Phillips India

08/03/2019 09:30

By Aditya Kalra
    NEW DELHI, March 8 (Reuters) - India's main financial
crime-fighting agency is investigating Philip Morris
International Inc  PM.N  and its Indian partner Godfrey Phillips
 GDFR.NS  for alleged violation of laws in India, a senior
directorate source told Reuters on Thursday.
    The Enforcement Directorate has been looking into both the
companies and the scope of the investigation is much broader
than the alleged foreign investment law violations highlighted
in a Reuters story published on Wednesday, the source said.
    Philip Morris has for years paid manufacturing costs to
Godfrey Phillips to make its Marlboro cigarettes, circumventing
a nine-year-old government ban on foreign direct investment in
the industry, Reuters reported based on a review of dozens of
internal company documents, which were dated between May 2009
and January 2018.  urn:newsml:reuters.com:*:nL3N20T2CL
    Three former officials and one former head of the
Enforcement Directorate had reviewed the Philip Morris documents
for Reuters and said the dealings should be investigated for
circumventing India's foreign investment rules.
    On Friday, the Enforcement Directorate source declined to
comment on whether the ongoing investigation included Reuters
reporting findings, but said "this is already under
investigation."
    "Both companies are being looked into," said the source, who
eclined to be named citing sensitivity of the investigation.
    The source declined to share further details of the probe.  
 
     

 (Reporting by Aditya Kalra
Editing by Martin Howell)
 ((aditya.kalra@thomsonreuters.com; +91-011-49548021; Reuters
Messaging: aditya.kalra.thomsonreuters.com@reuters.net (Twitter:
@adityakalra))