Cadbury-owner to pay ?89 crore penalty in bribery case
Food major Mondelez will pay $13 million (around ?89 crore) penalty to the US government for violating anti-corruption law by its subsidiary, erstwhile Cadbury India. The matter relates to Cadbury India allegedly paying over ?61 lakh to an agent to obtain "outside assistance" in securing licenses and approvals, which allowed Cadbury to claim a tax exemption worth over $90 million.
New Delhi, Jan 10 (PTI) Global confectionery and food major Mondelez International will pay USD 13 million penalty to the US government for violating anti-corruption law by its subsidiary, erstwhile Cadbury India, in getting regulatory approvals for expansion of a unit in Himachal Pradesh. The matter relates to violation of Foreign Corrupt Practices Act (FCPA) in India by Cadbury India, which had in 2009, took help of an agent to obtain "outside assistance" in securing various licenses and approvals to increase production capacity of one of its unit at Baddi, Himachal Pradesh. Passing a "cease and desist from committing or causing any violations and any future violations" order against Mondelez last week, the US Securities and Exchange Commission (SEC) said, Mondelez shall "pay a civil penalty in the amount of USD 13 million (Rs 88.5 crore) to the Securities and Exchange Commission for transfer to the general fund of the United States Treasury". Commenting on the development, a company spokesperson said: "Mondelez International Inc and Cadbury Limited are pleased to have reached an agreement with the SEC to settle charges related to internal controls and books-and-records provisions of the FCPA, without admitting or denying the charges." The spokesperson further said: "As part of the settlement, Mondelez International Inc has agreed to pay a civil penalty of USD 13 million to resolve the investigation." 