Cadbury paid bribes for setting up plant in Baddi, Himachal

Cadbury India Baddi

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

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8 Responses to "Cadbury paid bribes for setting up plant in Baddi, Himachal"

  1. Ravi Sharma   August 14, 2012 at 4:23 pm

    This is just a tip of the iceberg. If 50 lakh was the going rate of approving industries in 2009-10 one can imagine how much money the government has made in bribes as maximum industries came in Baddi during this period.

    One can easily make out why the BJP has been so sore about withdrawing the industrial package to the state.

  2. Chander   August 14, 2012 at 4:25 pm

    What a way to go for Cadbury? What did they say before offering the bribe – Kuch meetha ho jaye??

  3. Davinder Gupta   August 14, 2012 at 4:27 pm

    Shame on Himachal government. Is this the real reason why this government has been sore for withdrawal of the industrial package? Inquiry of all personals should be made and all their assets be probed who were dealing with industries in Baddi during this period

  4. Satish Chauhan   August 14, 2012 at 4:30 pm

    Very good article and very timely to post on Himachal Live. Considering the ‘social responsibility’ of our media towards the corporates this news will never be published in Himachal newspapers.

    Good work.. Keep it up.

  5. Vikrant Thakur   August 14, 2012 at 4:34 pm

    Himachal govt officials are sitting on a golden goose in the form of industries coming to Himachal. While it is indeed laudable that the Krafts Food did an internal audit of the working of Cadbury in India who will nail the corrupt Himachal babus? They must be laughing their way to Zirakpur and buying property in bulk. I am sure after the investigations no heads will roll in Himachal.

    Jai ho..

  6. Atul   August 14, 2012 at 7:13 pm

    Production at Cadbury Baddi should be suspended immediately and directors put behind bars. Begin with Kripalani the MD.

  7. Ajay   August 14, 2012 at 10:14 pm

    The article shows a very sorry state of affairs in Himachal Pradesh. On one hand Cadbury is a classic case of corruption by corporates who believe that anything can be done by throwing money the government officials acted in such fashion unless there were specific instructions to them to get money from all and sundry. It is an open secret that posting in such lucrative zone is given by the politicians after they are assured of a monthly fixed cut by these officials.

    The magnitude of money made in this belt can only be imagined as all rules are floated openly. Already pharma companies based here have given a bad name to Himachal Pradesh as lot many times medicines manufactured in Baddi have been confiscated by other states for being spurious. Drugs were openly made here and being exported to America. Clearly the only motive of the government is to earn bribes by whatever means.

  8. Roop Lal   August 15, 2012 at 8:53 pm

    Money paid through contractors – Ahem.. So that is what BJP workers have been upto all these five years.


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