Walmart-Flipkart deal: Traders' body to move CCI; says acquisition would create uneven playing field, trigger massive job losses

New Delhi: Traders' body CAIT on Monday said it will move fair trade regulator CCI to file objections on the proposed Walmart-Flipkart deal, claiming that the agreement would lead to an uneven playing field and massive job losses.

Global retail giant Walmart had last week approached Competition Commission of India (CCI) for approval of its proposed acquisition in Flipkart, saying the deal doesn't raise any competition concerns.

Walmart seeks to acquire 77 percent stake in the homegrown e-commerce firm with a buyout of $16 billion.

 Walmart-Flipkart deal: Traders body to move CCI; says acquisition would create uneven playing field, trigger massive job losses

Walmart CEO Doug McMillan and Flipkart co-founder Binny Bansal. Courtesy: Flipkart.

Opposing the deal, the Confederation of All India Traders (CAIT) on Monday wrote to Commerce Minister Suresh Prabhu and sought to know what steps the government has taken to scrutinise the deal.

CAIT Secretary General Praveen Khandelwal said important issues related to FDI policy, cyber security, apprehension of using e-commerce for entering retail trade by circumventing the law etc are involved in the deal and looking at the stiff opposition from trade bodies, online vendors and others, the government must scrutinise the deal in depth.

"It is highly regretted that so far government has not taken any step to consult the traders despite lodging their objections with the commerce ministry.

"Such an attitude indicates the turning balance towards MNCs at the cost of ignoring the domestic retail trade. It is much against the BJP manifesto of 2014 which has committed no encouragement to FDI in retail. It appears that government has taken a U-turn on its declared commitment," CAIT said.

Khandelwal further said sadly in the last four years no steps have been taken by the government to ensure speedy and stimulated growth of domestic trade whereas several steps have been taken to encourage MNCs to enter retail trade of the country.

"The Walmart-Flipkart deal will prove to be a nightmare for retail trade and economy of the country. There will be enormous job losses and an uneven playing field," he said.

Updated Date: May 21, 2018 19:07:08 IST