NCLAT wants to know India business models from Wal-Mart International and Flipkart

The National Company Law Appellate Tribunal (NCLAT) has asked US retail major WalMart and e-commerce major Flipkart to explain their way of doing business in India.

NCLAT, which is also an appellate authority over the Competition Commission of India (CCI), has asked Wal-Mart International Holdings Inc to file its reply before it by September 20, 2018.

It has also asked trader's body CAIT, which has filed an appeal before NCLAT challenging the go ahead by fair trade regulator CCI on Walmart's USD 16 billion acquisition of home-grown Flipkart, to file its understanding over the Walmart's business model in India.

"Before going into the merit of the appeal, we intend to know the manner in which Wal-Mart International Holdings, Inc. and Flipkart Private Ltd do their business in the relevant market in India," said an NCLAT bench headed by Chairman Justice S J Mukhopadhaya.

The tribunal further said: "The appellant (CAIT) may file relevant list of dates and their understanding of sales by Respondent No 2 (Wal-Mart International) by way of an additional affidavit within a week thereof."
The CCI had said it is "not likely to have an appreciable adverse effect on competition in India and therefore, the same is hereby approved."