CAIT demands scrutiny of proposed Flipkart and Walmart deal
New Delhi: Traders' body CAIT on Sunday demanded scrutiny of the proposed $12-billion Flipkart-Walmart deal, claiming that it will promote loss funding and predatory pricing in e-commerce sector.
It is really unfortunate that in spite of having a clear FDI policy, foreign companies are finding an escape route, whether it is in retail or e-commerce, Confederation of All India Traders (CAIT) said.
The traders' body took a strong objection to the Walmart-Flipkart deal and demanded the government to form a regulatory authority for e-commerce and till the authority is formed, no such deal should be allowed.
The comments assume significance as global retail giant Walmart is inching closer to sealing the deal to buy a majority stake in Flipkart for as much as $12 billion, even though rival Amazon is still jostling to turn the deal in its favour.
The Flipkart buy may be one of the largest deals in the retail sector and by far, the biggest in the country's booming e-commerce market.