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Flipkart-Walmart deal wil promote loss funding, predatory pricing: CAIT

The traders' body took a strong objection to the Walmart-Flipkart deal and demanded the government to form a regulatory authority for e-commerce

Press Trust of India  |  New Delhi 

Walmar, Flipkart
Representative Image

Traders' body CAIT today demanded scrutiny of the proposed $12-billion Flipkart-deal, claiming that it will promote loss funding and in sector.

It is really unfortunate that in spite of having a clear FDI policy, foreign are finding an escape route, whether it is in retail or e-commerce, Confederation of All Traders (CAIT) said in a statement.

The traders' body took a strong objection to the Walmart-deal and demanded the government to form a regulatory authority for and till the authority is formed, no such deal should be allowed.

The comments assume significance as global retail giant is inching closer to sealing the deal to buy a majority stake in for as much as $12 billion, even though rival is still jostling to turn the deal in its favour.

The buy may be one of the largest deals in the and by far, the biggest in the country's booming market.

"This (Walmart-Flipkart) deal should not be allowed since it will encourage more loss funding and on e-commerce which is already gripped with malpractices," CAIT said.

It also alleged that after failing to enter in through FDI has chosen e-commerce route, which will be quite harmful for the trading community.

First Published: Sun, May 06 2018. 16:06 IST
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