In strong worded communication to the government, CAIT on Friday said that the story of the East India Company might repeat again through the e-commerce route in the country. “Walmart is nothing but a US version of The East India Company which conquered the Country. It is highly regretted that some of the people for just merely earning the profit have sold major chunk of e commerce to Walmart,” said the Confederation of All India Traders (CAIT) said in a letter to Commerce Minister Suresh Prabhu. In case, the commerce ministry ignore its concerns, the traders body said it would approach the Prime Minister.
The traders body said that it fears the story of East India Company might happen again through the way of e-commerce. The set up of East India Company established the British rule in India.
Walmart would be entering retail trade and will indulge into predatory pricing, deep discounting and thereby creating an uneven level playing field, it added. The traders body also said that the global retailer would source globally the cheapest material and will dump in the country to wipe out the competition. There is no rule or law in place which can put restrictions on such practices of any company, the body further added.
CAIT also said that the Walmart-Flipkart deal needs through probe from every angle. It is apprehended that the deal is bound to circumvent established laws and FDI policy of the Government and through e commerce, the ultimate object of Walmart is to enter the retail trade of the country, the traders body also said.
Earlier this month, Walmart acquired 77 percent stake in Flipkart for $16 billion with an aim to expand its presence in the country. The Walmart-Flipkart deal amount includes $2 billion of primary infusion.