Flipkart deal threat
A traders body on Wednesday said it would challenge Walmart Inc's acquisition of Flipkart.
- Published 17.05.18
Mumbai: A traders body on Wednesday said it would challenge Walmart Inc's acquisition of Flipkart.
The Confederation of All India Traders (CAIT) said it would seek legal recourse on the $16 billion deal, while alleging that the deal circumvented laws.
The trade body also believes the transaction will create an uneven playing field for the brick and mortar retailers apart from allowing, what it said, Walmart's "hidden agenda'' of reaching out to the offline trade via e-commerce.
CAIT national president B.C. Bhartia and secretary- general Praveen Khandelwal said e-commerce was not Walmart's speciality. They said the government should closely monitor each passage of the deal since it was not a merger of two companies but would have greater ramifications on the retail trade and economy.
In a statement, CAIT said its team of lawyers was studying the deal and that the deal would be challenged shortly. Khandelwal added the government should frame a national policy for e-commerce and constitute a regulatory authority for the sector and till such time, the deal should be put in abeyance.
Walmart India chief corporate affairs officer Rajneesh Kumar said the company has been in India for many years and contributing to the economy through job creation, sourcing from small farmers and SME suppliers.
"We believe that this partnership will be beneficial to all stakeholders and Walmart will continue to be an economic contributor, PTI said while quoting Kumnar.