CAIT goes to Delhi High Court against Flipkart

By

Maverick Martins

Published
Aug 31, 2018

The Confederation of All India Traders (CAIT), a body representing Indian traders, has initiated legal proceedings against e-commerce major Flipkart in the Delhi High Court.

The trader’s body has filed a writ petition in the High Court and demanded an investigation into the business model of the online retailer Flipkart.
 
CAIT had earlier filed a petition in National Company Law Appellate Tribunal (NCLAT) demanding reversal of Competition Commission of India's approval to Walmart-Flipkart deal.

“Flipkart’s malpractices such as predatory pricing, discounting and inventory management cause a problem to other smaller sellers on the platform,” said Praveen Khandelwal, CAIT secretary general.
 
“We have filed a petition asking the court to intervene and direct the Enforcement Directorate to start an investigation into the allegations we have revealed,” he added.
 
CAIT had also announced that it will approach the Supreme Court opposing the Walmart’s 77 percent Flipkart acquisition deal, as it believes the deal harms Indian traders.
 
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.
 
However, despite CAIT’s reaction, Walmart and Flipkart have consistently maintained that the deal is in line with the government’s rules, which allows for 100 percent foreign direct investment under the automatic route for the marketplace e-commerce model.