On Thursday, the traders’ body filed a writ petition before the court praying that a direction be issued to the Enforcement Directorate (ED) to investigate the activities of Flipkart.
The Confederation of All India Traders (CAIT) is pulling out all stops to halt the Walmart-Flipkart deal and has now moved the Delhi High Court against the e-commerce platform. On Thursday, the traders’ body said it has filed a writ petition before the court praying that it gives directions to the Enforcement Directorate to investigate the business module of Flipkart. 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.
The move comes after the ED took no steps with respect to the CAIT’s complaint stating that the operations of Flipkart are not in consonance with the FDI policy. “CAIT has also relied on the recent observations made by the CCI (Competition Commission of India) that there must be legal and policy intervention to ensure that the activities of e-commerce players are within the ambit of FDI policy,” the traders’ association said in a statement.
Earlier in June, CAIT had filed a complaint against Flipkart with the ED for alleged violation of the government’s foreign direct investment (FDI) policy. According to a statement from the CAIT, it “has urged the ED to investigate the business module of other e-commerce companies also as largely everyone is circumventing the law, Flipkart is one example of that”.
In another move against the Walmart-Flipkart deal, the trader’s body had on Wednesday filed a petition in National Company Law Appellate Tribunal (NCLAT) against the CCI’s decision to approve the deal. In its appeal, the traders’ association said it has prayed for reversing the order of CCI as no opportunity of hearing was given to them.
The CCI on August 8 has said that it has approved US retail giant Walmart’s acquisition of Flipkart. “It is most unfortunate that leaving aside the objections raised by CAIT in CCI , the Commission has approved the deal. Without giving any opportunity of hearing to CAIT, the CCI has flayed principle of natural justice. We deeply condemn such an attitude and will certainly move to Higher Court against the decision of CCI,” Praveen Khandelwal, Secretary General, CAIT, had said on CCI’s decision.