Wal-Mart-Flipkart deal violates current laws and is considering to challenge the deal at legal level
Confederation of All India Traders (CAT), the merchant organization, said on Wednesday that the recent Wal-Mart-Flipkart deal violates existing laws and is considering to challenge the deal at the legal level. In a statement, the organization has asked the government to investigate the deal seriously.
The organization believes that this deal will have a bad effect on retail business and economy. CAT said in the statement that his lawyers are studying this matter seriously and very soon the organization will take legal action against the deal on fair and competent forums.
In its statement, the organization said, “CAT has decided to challenge the Wal-Mart-Flipkart deal because the deal is not in accordance with the existing laws.” If the deal happens, it will violate the Foreign Direct Investment (FDI) policy and create a non-equitable position for the business. Apart from this, Wal-Mart is engaged in promoting the hidden agenda of e-commerce by promoting offline business through this transaction.
Already exists Wal-Mart
Wal-Mart Company’s first deal was with Bharti Retail. Later, after the agreement was concluded, Wal-Mart India is operating 21 stores of cash and carry (wholesale) in the country. The company purchases 95 percent of the products at the domestic level.
Flipkart also did several acquisitions
Founded in 2007, Flipkart has achieved a number of critical stages in the Indian e-commerce market. The company increased its size with the acquisition of many companies like Mantra, Jabong, and Phone Pay In the year 2017-18, the company recorded sales of $ 4.6 billion. The company sells nearly 8 million products in more than 80 categories.
BY:- Abhishek Bajpai