NCLAT asks Walmart-Flipkart to explain their way of doing business in India

New Delhi, Sept 8 (KNN) With regard to Walmart-Flipkart deal, India’s National Company Law Appellate Tribunal (NCLAT) has asked Walmart & Flipkart to explain their way of doing business in India, following an objection raised by trader’s body, Confederation of All India Traders Association (CAIT).

NCLAT, an appellate authority over the Competition Commission of India (CCI), has issued the order to Wal-Mart International Holdings to file its reply latest by September 20.

Besides, NCLAT has also asked CAIT to file its understanding of Walmart’s business model in India.

"Before going into the merit of the appeal, we intend to know the manner in which Wal-Mart International Holdings Inc and Flipkart Private Ltd do their business in the relevant market in India," NCLAT said in a notice.

CAIT had filed the appeal before the NCLAT objecting Walmart-Flipakart deal. The trader body said the combination would create uneven level playing field and will wipe out the competition due to their business module which entails predatory pricing, deep discounting and loss funding.