Insta
NCLAT Sets Aside CAIT’s Plea Against CCI Nod For Acquisition Of Flipkart By US Retail Giant Walmart
IANS
Mar 12, 2020, 01:57 PM | Updated 01:57 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
The National Company Law Appellate Tribunal (NCLAT) on Thursday set aside traders’ body CAIT’s plea against the Competition Commission of India’s (CCI) approval for Walmart’s acquisition of e-commerce major Flipkart.
The appellate tribunal said that the plea by Confederation of All India Traders (CAIT) lacked merit and the association could not establish its allegations against anti-trust body's approval to the deal.
The two-judge bench also observed that the presence of Walmart is likely to add value to the Indian economy.
The US retail giant Walmart Inc picked up a 77 per cent stake in Flipkart for $16 billion in 2018 and CCI in August 2018 had said that it approved the acquisition.
CAIT had said that a small number of sellers were accounting for substantial sales on Flipkart, and with Walmart coming in, the issue would aggravate as Walmart''s goods through preferred sellers would be prioritised and given discounts by Flipkart.
The traders' body has time and again raised its concerns over the alleged bias towards certain preferred sellers along with the issue of deep discounting.
Following its requests, the CCI also ordered an anti-trust probe against e-commerce majors Amazon and Flipkart earlier this year which the Karnataka High Court later stayed.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.