Govt has taken U-turn on its commitment on FDI in retail in 2014 manifesto: CAIT on Flipkart-Walmart deal

New Delhi, May 22 (KNN) Alleging that the BJP deviating from its promise made in the 2014 election manifesto, traders’ apex body CAIT has threatened to move Competition Commission of India (CCI) to file objections against the proposed Walmart-Flipkart deal in case the government doesn’t take any measure.

 The Retailers have decided to jointly approach fair trade regulator CCI against USD 16 billion Walmart-Flipkart deal as they fear the deal it would lead to massive job loss and hit badly the retail trade of the country.

The Confederation of All India Traders (CAIT), in a statement, has alleged ruling party BJP of being biased towards multi-national companies and deviating from its commitment made in 2014 election manifesto.

On the other hand, an online sellers industry body today moved the Competition Commission of India (CCI) against Flipkart India Pvt Ltd, a wholesale company, for allegedly abusing its dominant position on Flipkart's online marketplace.

Meanwhile, the global retail giant Walmart had last week reportedly approached the Competition Commission of India (CCI) for approval of its proposed acquisition in Flipkart, saying the deal doesn't raise any competition concerns.

Walmart seeks to acquire 77 per cent stake in Flipkart with a buyout of USD 16 billion.

"The CAIT as a first step is moving to Competition Commission of India for filing its objections to Walmart deal," CAIT Secretary General Praveen Khandelwal said in a statement.

Opposing the deal, CAIT also wrote to Commerce Minister Suresh seeking to know what steps the government has taken to scrutinise the deal.

CAIT has alleged that the deal involves important issues related to FDI policy, cyber security, apprehension of using e-commerce for entering retail trade by circumventing the law etc.

Khandelwal alleged that the government has not taken any step to consult traders despite lodging their objections with the commerce ministry.

"Such an attitude indicates the turning balance towards MNCs at the cost of ignoring the domestic retail trade. It is much against the BJP manifesto of 2014 which has committed no encouragement to FDI in retail. It appears that government has taken a U-turn on its declared commitment," he said. (KNN Bureau)