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Now Cadbury joins the Corruption Bandwagon in India – What a Surprise

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Corruption in India seems to be throwing up a new character everyday with almost all the major institutions – judiciary,executive,corporates,bureaucrats,media being tainted by it.The latest to join the corruption bandwagon is the US Food MNC Kraft specifically its subsidiary Cadbury.Note Cadbury is one the biggest chocolate brands in India and has been present in the Indian market for a long time.The Corruption Charges are said to be in minor in nature as SEC is probing whether Cadbury gave bribes to set up a  manufacturing plant in India.I would be surprised if they managed to set up a plant in India without giving a bribe.India’s bureaucrats are notoriously corrupt and the venality has only increased despite numerous scams and scandals being exposed.

With top officials and politicians being not put behind bars despite billions of dollars of looting,the minor officials in charge of giving permits and regulatory approvals have to be compulsorily be bribed in order to do anything.Note there are honest officials in the Indian government otherwise the scandals would not have been exposed but there are in minority.The Indian government and minister continue to blatantly defend corruption with the Supreme Court routinely castigating and even overturning government decisions.

SEC probing possible corrupt act by Cadbury in India: Kraft

Kraft Foods, the world’s second biggest food company, has said it is facing investigation by the Securities and Exchange Commission (SEC) for possible corrupt practices in India by its arm Cadbury relating to a manufacturing plant there.

In a regulatory filing, the company said on February 1, 2011, it received a subpoena from the SEC in connection with an investigation under the Foreign Corrupt Practices Act (FCPA).

“The subpoena…primarily relates to a Cadbury facility in India that we acquired in the Cadbury acquisition and primarily requests information regarding dealings with Indian governmental agencies and officials to obtain approvals related to the operation of that facility,” it said.

While it did not elaborate on the details, Kraft Foods said: “We are cooperating with the US government in its investigation of these matters.”

Kraft Foods had acquired Cadbury globally, including the Indian operations, last year for USD 19.6 billion.

In India, Cadbury has five factories located in the states of Maharashtra, Karnataka, Andhra Pradesh and Madhya Pradesh producing confectionery items.

Cadbury India spokesperson declined to comment on the developments and referred queries to counterpart in Chicago, and immediate response could not be obtained.

In its SEC filing, Kraft Foods said after it acquired Cadbury in February, 2010, the firm began reviewing and adjusting Cadbury’s operations in light of US and international standards as well as Kraft Foods’ policies and practices.


Abhishek Shah

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  1. Siddhartha

    Most of the communities in India (such as Bengali), are succumbed in ‘Culture of Poverty'(a theory introduced by an American anthropologist Oscar Lewis), irrespective of class or economic strata, lives in pavement or apartment. Nobody is at all ashamed of the deep-rooted corruption, decaying general quality of life, worst Politico-administrative system, weak mother language, continuous absorption of common space (mental as well as physical, both). We are becoming fathers & mothers only by self-procreation, mindlessly & blindfold. Simply depriving their(the children) fundamental rights of a decent, caring society, fearless & dignified living. Do not ever look for any other positive alternative behaviour (values) to perform human way of parenthood, i.e. deliberately co-parenting of those children those are born out of ignorance, real poverty. All of us are being driven only by the very animal instinct. If the Bengali people ever be able to bring that genuine freedom (from vicious cycle of ‘poverty’) in their own life/attitude, involve themselves in ‘Production of Space’(Henri Lefebvre), at least initiate a movement by heart, decent & dedicated Politics will definitely come up.
    – Siddhartha Bandyopadhyay, 16/4, Girish Banerjee Lane, Howrah-711101, India.