New Delhi, June 19 (KNN) The Walmart-Flipkart deal will be cancerous for the Indian retail industry and for the entire economy, the Confederation of All India Traders (CAIT) has said in a letter to Finance Minister Piyush Goel.

The CAIT in its letter has also drawn the attention of minister towards the no move taken by Commerce and Ministry in this connection, despite sending communication to the trade minister.

"The Walmart Flipkart deal will prove to be cancerous to retail trade and economy of the country," CAIT Secretary General Praveen Khandelwal said.

One month has already been passed but no action government has taken yet to stop this deal which is offending FDI policy and circumventing the law, said CAIT.

Calling it an open case for backdoor entry of Walmart to retail trade of India, CAIT said that if no action is taken, other foreign e-Commerce majors like Amazon and Alibaba will also engage companies like Flipkart and the result would be consolidation of retail trade in very few hands which will be detrimental to offline retailers.

E-commerce spectrum will also be vitiated to a great extent, it added.

The CAIT has urged the finance minister to understand the seriousness and gravity of the situation and intervene in the issue since the traders have lost all hopes of getting this deal heard by commerce ministry.

In addition, requested a policy of e-Commerce to be framed immediately and a regulatory authority must be constituted for regulating and monitoring the e-Commerce market of the country.

Ever since the US retailer Walmart Inc has announced acquisition of 77 percent stake in Flipkart in its biggest takeover till date, CAIT has been opposing the deal. The deal values the 11-year old Indian e-Commerce firm at $20.8 billion.

In May, CAIT said Walmart's $16 billion acquisition of home-grown retailer Flipkart will affect India's retail sector "very badly" and demanded scanning and scrutinizing the deal from "different angles" by the government.