The Indian retailer body known as Retail trader body Confederation of All India Traders (CAIT) has threatened nationwide agitation if the Indian government clears $16 billion Walmart-Flipkart acquisition deal.
The US-based retailer Walmart acquired 77% stake in Flipkart in its biggest takeover in the history till date. The deal values the 11-year old Indian e-commerce firm at $20.8 billion.
“Since last five years we are knocking the doors of the government for bringing reforms in e-commerce but all has gone to deaf ears which encouraged Walmart to buy Flipkart and enter into retail trade indirectly,” CAIT said in a statement.
The deal will increase malpractices manifold in e-commerce spectrum. The basic fundamentals of the deal are based on circumvention of the law with an underlying object to exploit, manipulate and control the retail sector including e-commerce, it said.