InGovern flags concerns with FinMin about Flipkart hiring ex-CCI Officer

InGovern Research Services, a leading corporate governance advisory firm, said it has filed an official complaint with the Finance Ministry's Office and the Competition Commission of India (CCI), raising concerns about a breach of trust.

InGovern has raised concerns about the hiring of a former CCI member by Walmart-owned e-commerce firm Flipkart in March 2023.

It said that Anku Sharma, a former key member of the CCI team responsible for investigating Flipkart, joined Flipkart-Walmart as an Antitrust – Subject Matter Expert in March 2023.

InGovern alleged that Sharma's transition raises substantial doubts about the impartiality of CCI’s investigations, posing a potential threat to its integrity.

“There is a high probability that the investigation by CCI may have been compromised during the period Sharma was part of the investigation team at the CCI,” alleged InGovern.
 

“The entire chain of events is highly suspicious, something that casts a cloud of doubt over the impartiality of the investigation, and therefore, the entire findings of the CCI during. Sharma’s tenure should be deemed compromised.”

InGovern alleged that the integrity of the ongoing CCI investigations into e-commerce giants Flipkart-Walmart and Amazon has been in question. The CCI has been actively investigating e-commerce players since 2020, focusing on allegations of market monopolization and anti-competitive practices. These include preferential treatment for specific sellers and abuse of dominant market positions.

InGovern also recommended initiating a fresh investigation into this antitrust issue and taking appropriate measures to address any aberrations at the CCI. The firm is anticipating follow-up actions from the CCI in response to its communication and remains steadfast in its mission to advocate for corporate governance and transparency.

An email query to Flipkart regarding this development remained unanswered till the time of going to press. Sharma was posted as a legal expert in the office of the Director General, Competition Commission of India from March 2021 to January 2022. After that, he spent over a year at the law firm Spice Route Legal from February 2022 to February 2023. He was hired by Flipkart as an antitrust subject matter expert in March this year.

 According to the sources, CCI requires persons holding the post of chairperson or member to have a cooling off period of two years after their tenure is completed.

“Sharma joined the investigation team as a researcher on a contractual basis and is not required to adhere to any such cooling-off period. In any case, the investigation is still ongoing and hence it is premature to say that it is compromised,” the source added.