Police in southwest China's Chongqing Municipality have arrested two Wal-Mart employees after the company was found to be selling regular pork that was falsely labeled as organic, local authorities said on Wednesday.

Ten Wal-Mart stores and two affiliates have been ordered to temporarily close and pay 2.69 million yuan in fines. [File photo]

A total of 37 people have been implicated in the scandal so far, with 25 detained, seven under home arrest and three released on bail in addition to the two who were arrested, according to local police.

The Chongqing Administration of Industry and Commerce said on Sunday that 13 Wal-Mart stores in the city have been ordered to close for 15 days and pay 2.69 million yuan (nearly 423,000 U.S. dollars) in fines following a probe of the stores.

The Wal-mart stores allegedly sold about 63,000 kg of falsely labeled pork over the past two years, generating approximately 730,000 yuan in illegal income.

A further investigation on the case is still under way, local police said.

Wal-Mart employees arrested after pork scandal