Equities

Reuters exclusively reports Philip Morris paid for India manufacturing despite ban on foreign investment

Reuters exclusively reports Philip Morris paid for India manufacturing despite ban on foreign investment

Reuters exclusively reported on Wednesday that Philip Morris International Inc paid manufacturing costs to its Indian partner to make its Marlboro cigarettes for years, circumventing a nine-year government ban on foreign direct investment in the industry. Three former officials and one former head of India’s main financial crime-fighting agency, the Enforcement Directorate, reviewed the Philip Morris documents for Reuters and said the dealings should be investigated for circumventing India’s foreign investment rules. Shares in Godfrey Phillips fell more than 3 percent while Philip Morris was down around 0.7 percent in early US trade after the Reuters story was published.


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