Traders' body CAIT today said it will hold protests at 1,000 places across the country on July 2 against US retail giant Walmart's proposed acquisition of 77 per cent stake in home-grown retailer Flipkart in a USD 16 billion deal.
The traders' body passed a resolution at the conference asking the government to reject the deal. It demanded formulation of an e-commerce policy and setting up of a Regulatory Authority for the country's e-commerce sector.
In a statement, CAIT Secretary General Praveen Khandelwal said: "This time we shall be pursuing the matter with both ED (Enforcement Directorate) and Reserve Bank of India so that e-commerce companies including Flipkart and its new owner Walmart should not escape from the liability of mal-practices, predatory pricing and deep discounting."
CAIT claimed that "e-commerce platforms are grossly and openly flouting Press Note 3 of FDI Policy issued on March 29, 2016".
The commerce and industry ministry notifies FDI policies through press notes. Press Note 3, which was released in 2016, enlists guidelines for foreign direct investment in e-commerce sector. It also articulated that no discounting is allowed and that no inventory ownership directly or indirectly is allowed by e-commerce marketplaces.
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