Walmart Probes Flipkart Employees Over Alleged Kickbacks Exceeding ₹150 Crore

Walmart has initiated an internal investigation into Flipkart employees over allegations of receiving kickbacks exceeding ₹150 crore, according to Moneycontrol. The probe focuses on personnel from Flipkart's smartphones, luggage and travel accessories (LTA) divisions. This is the third such internal probe by Walmart at Flipkart within a three-year period.

The investigation was triggered by whistleblower complaints, which allege that employees accepted payments and favors from vendors in exchange for giving them preferential treatment on the platform. The exact amount and precise nature of the alleged misconduct are still being determined. Much of the alleged money was reportedly collected through Flipkart's business-to-business (B2B) channel, with some employees taking a cut from vendors of certain mobile phone brands when devices were transferred between business units.

Prior probes have targeted the LTA department, leading to the termination of at least three employees for financial misappropriation about two and a half years ago. This is the third internal investigation Walmart has conducted at Flipkart in under three years. The allegations come at a challenging time for Flipkart, which has seen at least 14 vice presidents and senior vice presidents depart over the past year.

Walmart, which owns over 80 percent of Flipkart, has not yet decided when to take the company public, and ex-employees have been demanding fairer stock buybacks. As of now, neither Walmart nor Flipkart has commented publicly on the matter, as the investigation continues. Action against those found responsible is anticipated only after the probe establishes the facts.