The Delhi High Court has directed the Centre government, Bharti Walmart Private Limited and Bharti Retail Limited to explain the violation of the country's Foreign Direct Investment policy.

The order came after a plea urged for an investigation into the retail trading by the company in multi-brand sector in the country, which is allegedly in violation of the FDI norms. The notices were issued by the bench of acting Chief Justice AK Sikri and Justice Anil Kuma.

The Public Interest Litigation (PIL) was filed by scientist and environmental activist Vandana Shiva. IT alleged that Bharti Walmart is carrying out multi-brand retail trade even as it has the permission to carry out only wholesale cash-and-carry trade in the country.

Lawyer Pinky Anand representing the PIL claimed that many companies in the country are simply acting as the front for their foreign partners and allowing them to have majority control and economic interest in the retail sector.

The PIL read, "This instant case seeks to expose how many established Indian companies are actually fronting for foreign trading companies that have partnered with them for setting up companies in India for the purpose of carrying on trade, so as to give the foreign partner majority control and economic interest in the Indian retail sector, thereby circumventing the FDI prohibition of multi-product trading in the retail sector."