Traders, shopkeepers threaten to move SC
Traders and shopkeepers dead set against Walmart’s $16-billion acquisition of Flipkart have decided to oppose the deal at every step and move the Supreme Court (SC) if required to defend their interests.
A top official of the Confederation of All India Traders (CAIT) told Mint that the industry body would escalate the matter if the Competition Commission of India (CCI) rules in favour of the deal and if the government doesn’t block the transaction.
On Monday, thousands of shopkeepers and traders affiliated with CAIT organized protests across the country, arguing that the deal would drive small and medium-sized offline retail tooth ers and traders out of business.
Praveen Khandelwal, secretary general of CAIT, said the traders’ body had sought an appointment with the commerce ministry to discuss the matter and push for the deal to be blocked.
“We have been expecting the government to reject this deal, but so far, we haven’t heard from them... We will fight this deal and nail, and, if necessary, take this matter to the Supreme Court,” Khandelwal told Mint.
In May, CAIT, which is one of the largest traders’ bodies in the country, had filed a petition with antitrust regulator CCI, objecting to the Walmart-Flipkart deal on the grounds that the buyout creates an uneven playing field for sellers.
Prior to CAIT’s petition, Walmart had written to CCI, seeking approval for the transaction, saying that it did not create any competition concerns and that the pecking order of the broader retail market in India remained unaffected by the deal.
Walmart’s proposed buyout of Flipkart does not create an entity that has a monopoly-like position in either the offline or online retail business in India.