New Delhi: Retailers have joined hands to approach fair trade regulator CCI against $16 billion Walmart-Flipkart deal as they apprehend that it would lead to massive job loss and be a “nightmare for retail trade” of the country.
Traders body CAIT in a strongly worded statement alleged ruling party BJP of bias towards multinational companies and deviating from its commitment made in 2014 election manifesto.
Khandelwal alleged that the government has not taken any step to consult 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,” he said.
The Confederation of All India Traders (CAIT) said that 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.
On the other hand, an online sellers industry body also moved the Competition Commission of India against Flipkart India Pvt Ltd, a wholesale company, for allegedly abusing its dominant position on Flipkart’s online marketplace.
Global retail giant Walmart had last week approached the Competition Commission of India (CCI) for approval of its proposed acquisition in Flipkart, saying the deal doesn’t raise any competition concerns.
Walmart proposes to acquire 77% stake in the homegrown e-commerce firm with a buyout of $16 billion.
Opposing the deal, the CAIT also wrote to Commerce Minister Suresh Prabhu and sought to know what steps the government has taken to scrutinise the deal.