Opposing the proposed USD 16 billion Walmart-Flipkart deal, retailers on Monday came together and are planning to approach trade regulator Competition Commission of India (CCI) to file their disagreement over the deal. Substantiating their objection, the retailers claimed that if the deal is approved, it would lead to massive job losses and be a “nightmare for retail trade” of the country. Reports said that Walmart seeks to acquire 77% stake in the homegrown e-commerce firm with a buyout of $16 billion. On Monday, the trader’s body Confederation of All India Traders (CAIT) wrote to Commerce Minister Suresh Prabhu and sought to know what steps the government has taken to scrutinise the deal.
On the contrary, Global retail giant Walmart had last week moved the CCI for an approval of its proposed acquisition in Flipkart, citing the deal doesn’t raise any market concerns.
In a statement released by the CAIT, the union has slammed BJP saying the party has become biased towards the two multi-national companies. The statement also alleged the saffron party of not staying bound to its commitment made in 2014 election manifesto.
“It is highly regretted that so far the 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.
However, according to CAIT Secretary General Praveen Khandelwal, the deal must be scrutinise in depth by the government following the important issues related to FDI policy, cybersecurity, 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.