Uber IPO filing reveals it is under investigation for ‘improper payments’ in India
Uberhas filed for IPO and its documents reveal that it is being investigated for improper payments in India.
IPO filinghas 24 mentions of India.
- The company’s IPO will take its valuation to $100 billion.
However, the regulatory documents filed by the ride-hailing company also carry a risk warning that it’s under investigation for improper payments in many countries where it operates, including India.
The IPO filing, which mentions India 24 times, said that it is being investigated for “small payments to police in Indonesia and other potential improper payments in other countries” in which it operates or has operated including Malaysia, China, and India.
“We have operations in countries known to experience high levels of corruption and are currently subject to inquiries, investigations, and requests for information with respect to our compliance with a number of anti-corruption laws to which we are subject,” stated the company in its IPO filing.
However, Uber is not the first country to have faced ire for wrong payments during an IPO. According to reports, Cognizant had paid $28 million in fines to the Securities and Exchange Commission in the US, for bribes paid to Indian officials for building permissions. Foreign Corrupt Practices Act in the US accounts for transparency requirements under the Securities Exchange Act of 1934 and also concerns bribery of foreign officials.
Uber, meanwhile, has said that the investigation is ongoing, and they are cooperating with the Department of Justice in the investigation.
Uber’s IPO filing in the US cites Ola, Zomato, and Swiggy as threats to its India business