Cadbury manufacturer may face action for allegedly bribing Indian officials
Mondelez International is under investigation for its dealings with Indian government agencies while obtaining operation approvals for a facility it acquired as part of its Cadbury takeover.
Mondelez International, which manufacture Cadbury chocolates and Oreo biscuits, might face enforcement action from the Securities and Exchange Commission in the United States for allegedly bribing Indian government officials to get factory permissions, the confectionery giant revealed. An enforcement action is an action by a body to ensure that its rules are being followed.
The investigation under the Foreign Corrupt Practices Act is related to a facility in India it had acquired as part of its takeover of Cadbury in 2010. Mondelez said it had first received a subpoena from the SEC in February 2011. It was asked to provide information regarding its dealings with Indian government agencies and officials to acquire operation approvals for that facility.
Mondelez is also challenging show-cause notices issued by the Indian central excise authority seeking unpaid taxes and penalties from it, PTI reported. The US-based multinational said that in February 2013 and March 2014, the department sent notices seeking an explanation for why it should not pay unpaid excise tax amounting to Rs 370 crore and an equivalent amount of penalties, as well as interest. These taxes were related to production at the same Indian facility in question. Mondelez was sent additional show-cause notices in February 2015 and December 2015 on the same issue, adding that it contested these demands.