Exclusive: India investigating Philip Morris, Godfrey Phillips: source

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Exclusive: India investigating Philip Morris, Godfrey Phillips: source
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India's main financial crime-fighting agency is investigating Philip Morris...

NEW DELHI - India’s main financial crime-fighting agency is investigating Philip Morris International Inc and its Indian partner Godfrey Phillips for alleged violation of the country’s laws, a senior directorate source told Reuters on Thursday.

Philip Morris has for years paid manufacturing costs to Godfrey Phillips to make its Marlboro cigarettes, circumventing a nine-year-old government ban on foreign direct investment in the industry, Reuters reported based on a review of dozens of internal company documents, which were dated between May 2009 and January 2018.

“Both companies are being looked into,” said the source, who declined to be named citing sensitivity of the investigation.A spokesman for the Enforcement Directorate did not respond to an e-mail seeking comment. Philip Morris and Godfrey did not immediately respond to requests for comment.

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