The Confederation of All India Traders (CAIT) today sought immediate intervention of the Government in proposed merger deal of Walmart-Flipkart and calls for an inquiry into the metrics of the deal. Since there is no policy or rules for e-commerce as of now, no such deal should be allowed as it will more encourage all kinds of malpractices, loss funding and predatory pricing on e-commerce in absence of any monitoring mechanism and will create an uneven level playing field and it will give rise to unhealthy competition where traders whether offline or online will not be able to compete with proposed merger-said CAIT.
CAIT National President Mr. B.C.Bhartia & Secretary-General Mr. Praveen Khandelwal demanded the Government to constitute a Regulatory Authority for e-commerce and all such deals should be passed through the scanner of such Regulatory Authority.
This deal will give no benefit to Indian Trade or economy rather it will be a money making exercise for venture capitalist and promotors of Flipkart at the cost of Indian retail. If this deal happens, it will give a big jolt to the Indian economy. Therefore, a closer scrutiny of the deal is required by the Government.
Both Mr. Bhartia & Mr. Khandelwal said that sale of Flipkart 's Singapore holding company should not be allowed till the time the Government frame e commerce policy . Flipkart ' s wholesale arm Flipkart India Pvt Ltd has admitted before Income Tax that they carry out deep discounting in wholesale as a marketing strategy. Sadly, the Government is not looking at this aspect and has not framed any rules for this sector. "
We shall petition legally if Flipkarts Singapore company is sold and try to stop all fresh investments in its Indian companies until our demands are met.
No new investment should be allowed in "pseudo marketplaces" which run the domains Myntra.com Jabong.com and Flipkart.com until 75% of the sellers actively selling on these platform give their approval to the sale of Flipkart as they will be most affected by the transfer of power of entire B2B, logistics and marketplace arms of Flipkart group "-said both trade leaders.
Both Mr. Bhartia & Mr. Khandelwal said that we are neither against e-commerce companies nor against FDI in the sector of marketplaces, however, th see types of e-commerce companies are flouting all norms and even the sellers selling on their marketplace are unhappy with such discrimination. The sellers have complained time and again regarding their internal issues which are being ignored, and therefore, we demand a regulatory authority to be set up to look into their complaints on a regular basis. We are talking not only on behalf of offline traders.
It’s 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 Govt inspite of well knowing the intent and hidden agenda of Companies like Walmart , is keeping its eyes and ears shut . Rather Govt is laying the red carpet for them. Commerce Minister has no time to talk about the domestic trade but is always prompt in meeting MNCs.
The CAIT is taking a strong objection to it and will soon knock the doors of the Govt including Competition Commission of India (CCI) and if need be shall not hesitate to go to Court as well. All unholy nexus should be scanned and stopped.