Small traders on Sunday said that Walmart should not be allowed to pick up majority stake in Flipkart as it will lead to predatory pricing hitting the mom and pop shops.
Traders’ body CAIT demanded scrutiny of the proposed $12-billion Flipkart-Walmart deal.
CAIT has asked the government to form a regulatory authority for e-commerce and till the authority is formed no such deal should be allowed.
“CAIT demands government scrutiny of the Walmart-Flipkart deal. This deal should not be allowed since it will encourage more loss funding and predatory pricing on e-commerce which is already gripped with mal-practices,” it said
CAIT said that it was really unfortunate that inspite of having a clear FDI policy, the foreign companies are finding escaping route whether it is in retail or e-commerce.
“Same is the case of Walmart that after failing to enter India in retail sector through FDI, it has chosen e-commerce route which will be quite harmful for the trading community. Unfortunately, the government inspite of well knowing the intent and hidden agenda of companies like Walmart, is keeping its eyes and ears shut. Rather government is laying red carpet for them. Commerce minister has no time to talk about domestic trade but is always prompt in meeting multinational corporations,” said CAIT.
The body also said it is taking a strong objection to it and will soon knock the doors of the government including CCI and if need be shall not hesitate to go to court as well.
“All unholy nexus should be scanned and stopped,” it added.
The body’s comments assume significance as the 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.
