The CAIT had last month filed a petition in the NCLAT against the Competition Commission of India's decision to approve the US retail giant Walmart’s acquisition of e-commerce Flipkart.
The National Company Law Appellate Tribunal (NCLAT) on Friday said it intends to know the manner of business operations of US retail company Walmart and Flipkart in India’s market. The development comes after an appeal of the Confederation of All India Traders (CAIT) to the NCLAT against the Walmart-Flipkart deal. The traders’ body had last month filed a petition in the NCLAT against the Competition Commission of India’s decision to approve the US retail giant Walmart’s acquisition of e-commerce Flipkart.
“Before going into the merit of the appeal, we intend to know the manner in which Wal-Mart International Holdings, Inc. and Flipkart Private Limited do their business in the relevant market in India,” the NCLAT said in a notice on Friday. “2nd Respondent may file reply-affidavit on the aforesaid limited issue by 20th September 2018. The appellant may file relevant list of dates and their understanding of sales by Respondent No. 2 by way of an additional affidavit within a week thereof,” it added.
The development comes after the CAIT last month moved the Delhi High Court against the e-commerce platform. Pulling out all stops to prevent the Walmart-Flipkart deal, the traders’ body had filed a writ petition before the court and prayed that it gives directions to the Enforcement Directorate to investigate the business module of Flipkart. The CAIT had filed a complaint against Flipkart in June with the ED for alleged violation of the government’s foreign direct investment (FDI) policy. However, with no steps taken by the ED, the CAIT moved the high court.
According to the CAIT, Flipkart is actively engaged in the inventory-based model of e-commerce in the guise of operating under a marketplace model. In another move against the Walmart-Flipkart deal, the trader’s body had filed a petition in the NCLAT against the CCI’s decision to approve the deal. The CCI on August 8 had approved the Walmart-Flipkart deal.
Protesting the deal, the traders’ body will also launch a 90-day nationwide agitation from September 15, starting from the national capital. The CAIT has also called for a ‘Bharat Trade Bandh’ on September 28. “We are intensifying our opposition to the Walmart-Flipkart deal and foreign direct investment (FDI) in retail,” the CAIT said in a statement. “We have called for a ‘Bharat Trade Bandh’ on 28th of this month on this issue and are launching a 90-day nationwide agitation from September 15, from Delhi,” it added.