Walmart-Flipkart deal circumvents law, says CAIT seeking govt intervention
New Delhi, May 17 (KNN) Traders’ apex body CAIT has urged the government to scrutinize government to conduct close alleging that the deal circumvents law and will affect retail trade in the country.
The Confederation of All India Traders (CAIT) said it would seek legal recourse on the matter.
In a statement, CAIT urged the government to conduct close scrutiny of the deal that it claimed will have greater ramifications on retail trade and the economy.
US retail giant Walmart Inc has announced acquisition of 77 per cent stake in Flipkart with a deal at USD 20.8 billion.
"CAIT has decided to challenge Walmart Flipkart deal since the deal is circumventing laws and will offend FDI policy once it is implemented and will create an uneven level playing field besides accomplishing hidden agenda of Walmart to reach out to offline trade through e-commerce way," it said.
It added that its team of lawyers is studying the deal and very shortly, CAIT will move to appropriate authorities and seek legal recourse.
CAIT has also demanded that a national policy for e-commerce be framed at the earliest and a regulatory authority be constituted to regulate the online retail business in India.
"...and till such time, the deal should be put in abeyance by the Government and a close scrutiny should be held in the entire deal," it added. (KNN Bureau)