Walmart Probes Flipkart Over Alleged ₹150 Crore Kickbacks

More than ₹150 crore, or about $16 million, is at the heart of Walmart’s latest inquiry into alleged kickbacks at Flipkart. Whistleblower complaints say employees in the smartphone and luggage and travel accessories businesses accepted payments or favours from vendors. The claims are still under investigation; the amount and alleged wrongdoing have not been confirmed. The $16 million figure is an estimate, not a confirmed finding. ^3,5

That estimate follows two earlier internal probes at the Indian online retailer, which Walmart has controlled since 2018. About two and a half years ago, an inquiry into Flipkart’s luggage and travel accessories business led to at least three employees being fired. Around six months ago, a separate smartphone probe found one employee guilty; that person resigned before the company could fire them, according to reports. The current inquiry centres on staff allegedly taking cuts as mobile devices moved between businesses, then giving favoured sellers better visibility. Investigators are reviewing Flipkart Wholesale and a separate business-to-business sales program for marketplace sellers. ^3,5

These business-to-business channels serve retailers and other companies alongside Flipkart’s marketplace for shoppers. The alleged exchange matters because a better position on the platform can help a vendor win more sales, while payments to staff could undermine fair treatment of sellers. The allegations also raise questions about the company’s checks, especially after earlier probes into two of the same business areas. Still, the reported figure remains preliminary, and investigators have yet to settle the amount, the extent of the conduct or whether employees worked together. Walmart owns more than 80% of Flipkart. ^1,3,5

That uncertainty leaves the next step with Walmart. People familiar with the inquiry say the findings should become clearer over the coming weeks. The company will then decide what action to take. Walmart and Flipkart did not comment on questions sent by Moneycontrol, according to its report. The investigation is unfolding as Flipkart also faces senior staff departures and employee concerns over when they can sell their stock options. ^3,5