CAIT to host mul­ti­ple protests against Wal­mart-Flip­kart deal

Apparel Online - - Domestic Update -

The Wal­mart re­cently an­nounced that it has com­pleted the US $ 16 bil­lion trans­ac­tion giv­ing it the ma­jor­ity stake in In­dia’s lead­ing e-com­merce firm Flip­kart.

Soon af­ter the ac­qui­si­tion was com­pleted, the Con­fed­er­a­tion of All In­dia Traders (CAIT) de­cided to call for ‘Bharat Bandh’ on 28th Septem­ber to op­pose the deal. CAIT claims that the deal vi­o­lates the Gov­ern­ment’s Press Note

No. 3 of 2016. It is im­por­tant to add here that, Press Note No. 3 of 2016 of Gov­ern­ment marks out the guide­lines for the For­eign Di­rect In­vest­ment (FDI) on e-com­merce, which states that no own­er­ship di­rectly or in­di­rectly over the prod­ucts sold on the mar­ket­place is al­lowed for the owner. Praveen Khan­del­wal, Sec­re­tary-Gen­eral, CAIT was quoted as say­ing, “The deal be­tween Wal­mart and Flip­kart is try­ing to con­trol and dom­i­nate the re­tail sec­tor through the pas­sage of e-com­merce.” The Sec­re­taryGen­eral fur­ther said that this deal will cre­ate an un­even play-field and elim­i­nate their com­peti­tors by pro­vid­ing preda­tory pric­ing, of­fer­ing huge dis­counts and loss of fund­ing. CAIT is also go­ing to host a pan-In­dia Rath Ya­tra on 15th Septem­ber op­pos­ing the ac­qui­si­tion. No­tably, the trader’s body came to this de­ci­sion af­ter its yearly meet­ing which was held in Nag­pur on 19th Au­gust. More than 200 trade lead­ers from the coun­try par­tic­i­pated in the meet­ing and agreed on the de­ci­sion to op­pose Wal­mart tak­ing a 77 per cent stake in Flip­kart. Fur­ther­more, the In­dian trader’s body has also an­nounced that it will hold a mega rally on De­cem­ber 16 to op­pose the dis­crim­i­na­tory treat­ment against traders.

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