In a startling revelation, Cadbury India Ltd is under investigations for paying bribes to Himachal Pradesh officials for setting up a production plant in Sandhol in Baddi in district Solan.
According to Forbes India, Cadbury India Ltd which is owned by the USA based Kraft Foods is under a regulatory investigations after Cadbury India Ltd officials bribed their way through important approvals.
As per the report the company had put aside Rs. 50 lakh for bribes alone to get the necessary approvals from the state government. These bribes were routed through the contractors working in Baddi plant to the government officials.
The report is a big blot for the BJP led government in Himachal Pradesh as allegations of corrupt business practices have long been alleged in the BBN industrial belt.
In February 2011, in a filing with the US markets regulator Securities and Exchange Commission (SEC), Kraft Foods disclosed that it had carried out a review of compliance systems at Cadbury, and admitted that it had found facts and circumstances that warranted further investigation in India.
Earlier on on September 6, 2010, an important rendezvous took place at the Taj Chandigarh. Rajan Nair, who is responsible for security at Cadbury’s operations in India, was there to meet a man who had provided canteen services to the company’s factory in Baddi, Himachal Pradesh. Sensing the gravity of the situation, Nair had informed his boss Adrian Wong, director security and special investigations at Kraft Foods, who had flown from Singapore for the meeting.
At the meeting, Mohit, the canteen services provider, went about detailing allegations of corruption and wrong doing at the company’s Baddi facility. While Mohit conceded he was upset about the manner in which his services were terminated, he said he had enough evidence to show the company had bribed government officials.
Read the full story on Forbes India