Alleging that Wal-Mart is trying for a “back door entry” to the country’s retail sector by striking a deal with the Bharti Enterprises, the CPI on Tuesday urged the UPA government to block the retail giant operating in India. Sources in the party told FE that the issue might be raised in the ongoing winter session of the Parliament.

“FDI in retail trade is not permissible under the existing policy on foreign investment in India. The Wal-Mart’s franchisee agreement with Bharti Enterprises is an attempt to circumvent existing policy regulations to gain a foothold in the Indian market,” a statement of the party’s politburo said.

Reiterating its earlier stand that allowing FDI in retail sector will create massive unemployment, the party said, “What is urgently required is a strong regulatory framework for the domestic organised retail sector, which is expanding at a rapid rate.” The party also warned it would venture into protest measures to prevent the entry of Wal-Mart into India.

“This is a clear violatin of Common Minimum Programme and the government should intervene,” a senior CPI MP told FE.