CAIT petitions NCLAT opposing Walmart-Flipkart deal

By

Maverick Martins

Published
Aug 29, 2018

The Confederation of All India Traders (CAIT), a body representing Indian traders, has filed a petition in National Company Law Appellate Tribunal (NCLAT) demanding reversal of Competition Commission of India's approval to Walmart-Flipkart deal.

CCI earlier this month had approved U.S. retail giant Walmart Inc’s $16 billion acquisition of online marketplace Flipkart.
 
"We deeply condemn such an attitude and will certainly move the court against the decision of CCI,” CAIT Secretary General Praveen Khandelwal had said, after CCI’s nod to the deal. The traders' body has finally moved the court opposing the deal on several grounds.

"It was alleged that the proposed combination would lead to a huge degree of vertical integration in the market since Walmart is a global retail giant with its own range of multi-brand products and where the B2B market is concerned, there is a high likelihood of Flipkart and Walmart would affect other wholesalers on the platform," CAIT said in a statement.
 
"The CCI, which is supposed to adjudge the likelihood of impact of a combination if it is approved on the market, completely disregarded the predatory activities undertaken by both parties in India and abroad in the past that were categorically put forth in the objections filed by CAIT," it added.
 
CAIT will be holding a series of protests in the country starting September 15 against Walmart-Flipkart deal, which it feels is a violation of Press Note No 3 of 2016 of Government.

The markets across the country will remain closed on 28 September while observing Bharat Trade Bandh.