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India's CAIT petitions NCLAT against Walmart-Flipkart deal
31 Aug '18
2 min read
The Confederation of All India Traders (CAIT) has filed a petition with the National Company Law Appellate Tribunal (NCLAT) against the Competition Commission of India's decision early this month approving the deal between US giant Walmart and Flipkart. CAIT has requested for reversing the CCI order as it was not offered an opportunity to present its side.
The traders’ body has also written to commerce minister Suresh Prabhu urging him not to dilute the fundamentals of the proposed e-commerce policy despite people with vested interest lobbying hard to make the policy according to their whims, according to Indian media reports.
CCI has in its order ignored the predatory activities carried out by both the retail companies in the past, CAIT’s petition mentioned.
The discounts funded and financed by e-commerce platforms are the biggest weapons used by them to gain market shares, which is nothing but classic predatory pricing and the e-commerce policy must contain restrictions on offering discounts and freebees, a CAIT statement said.
These e-commerce platforms are ‘blatantly violating’ the conditions imposed by Press Note 3, which lays down rules for foreign funded e-commerce firms, under Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) regulations, according to CAIT.
The enforcement agencies are looking the other way “probably under some sort of influence which is evident from the fact that in past years many complaints have been made directly and also forwarded by Commerce Ministry but so far no investigation has been conducted and the issue is being dealt in a casual manner,” CAIT alleged. (DS)
The traders’ body has also written to commerce minister Suresh Prabhu urging him not to dilute the fundamentals of the proposed e-commerce policy despite people with vested interest lobbying hard to make the policy according to their whims, according to Indian media reports.
CCI has in its order ignored the predatory activities carried out by both the retail companies in the past, CAIT’s petition mentioned.
The discounts funded and financed by e-commerce platforms are the biggest weapons used by them to gain market shares, which is nothing but classic predatory pricing and the e-commerce policy must contain restrictions on offering discounts and freebees, a CAIT statement said.
These e-commerce platforms are ‘blatantly violating’ the conditions imposed by Press Note 3, which lays down rules for foreign funded e-commerce firms, under Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) regulations, according to CAIT.
The enforcement agencies are looking the other way “probably under some sort of influence which is evident from the fact that in past years many complaints have been made directly and also forwarded by Commerce Ministry but so far no investigation has been conducted and the issue is being dealt in a casual manner,” CAIT alleged. (DS)
Fibre2Fashion News Desk – India
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