US retail giant Walmart has launched an investigation into allegations that employees at its subsidiary Flipkart received over ₹150 Cr ($16 Mn) in kickbacks from vendors.

The probe follows whistleblower complaints involving employees in Flipkart’s smartphones and luggage and travel accessories (LTA) divisions, Moneycontrol reported, citing people familiar with the matter.

Employees allegedly accepted payments and favours from vendors in exchange for preferential treatment on the ecommerce platform, including greater visibility that helped drive sales.

According to the report, some employees allegedly used Flipkart’s B2B operations to facilitate these arrangements. In the smartphones category, employees allegedly took cuts from vendors when devices moved between businesses.

The investigation is ongoing, and the exact quantum and nature of the alleged wrongdoing are yet to be established, the report added.

Responding to Inc42’s queries, a Flipkart spokesperson said, “Flipkart has robust governance processes and controls and is committed to the highest standards of integrity and compliance. We take any concerns seriously and address them through established processes. We remain committed to ensuring the highest standards of ethical conduct across our business.”

According to Moneycontrol, this is Walmart’s third investigation into alleged financial misconduct at Flipkart in less than three years.

An investigation into employees in the LTA division around two-and-a-half years ago resulted in at least three dismissals. Another probe in the smartphones division around six months ago reportedly found wrongdoing by an employee, who resigned before being dismissed.

Flipkart Grapples With Multiple Challenges

The investigation comes amid senior leadership exits, former employees’ concerns over ESOP liquidity, and uncertainty surrounding Flipkart’s IPO timeline .

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