Traders' body CAIT today described as 'most unfortunate' the Competition Commission of India's move to clear the Walmart-Flipkart deal and said it will approach the court against the decision.
Traders’ body CAIT today described as ‘most unfortunate’ the Competition Commission of India’s move to clear the Walmart-Flipkart deal and said it will approach the court against the decision.
The Competition Commission today said it has approved US retail giant Walmart’s proposed 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 the court against the decision of CCI. CAIT has called an emergency meeting of its governing council on August 19 at Nagpur to take stock of the situation and finalise strategy for a nationwide movement,” CAIT Secretary General Praveen Khandelwal told PTI.
The Confederation of All India Traders (CAIT) has been demanding the government to scrap the deal and constitute a regulatory authority to regulate and monitor the country’s e-commerce market. The trader’s body had said it apprehends that the deal is bound to circumvent established laws and FDI policy of the government. In May, Walmart Inc announced acquisition of 77 per cent stake of Flipkart in its biggest takeover till date. The deal values the 11-year old Indian e-commerce firm at USD 20.8 billion.
“@CCI_India approves proposed acquisition of Flipkart Private Limited by Wal-Mart International Holdings, Inc,” the regulator said in a tweet. Deals beyond a certain threshold are required to get clearance from the Competition Commission of India (CCI). The regulator keeps a tab on unfair business practices in the market place.