NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) on Friday asked the US retail giant Walmart and domestic e-commerce major Flipkart to submit in detail the way they do their business in India.
The NCLAT, which is also the appellate authority for the Competition Commission of India (CCI), has asked the traders’ body CAIT, which has filed an appeal before it challenging CCI’s approval of Walmart’s acquisition of Flipkart, to file its understanding over Walmart’s business model in India.
“Before going into the merit of the appeal, we intend to know the manner in which Walmart International Holdings Inc and Flipkart Private Ltd do their business in the relevant market in India,” said an NCLAT bench headed by Justice S J Mukhopadhaya. NCLAT has asked Walmart to file its reply by September 20, 2018.
“The appellant (CAIT) may file relevant list of dates and their understanding of sales by Respondent No 2 (Walmart International) by way of an additional affidavit within a week thereof,” the tribunal further said, directing the matter be listed on October 5. CCI, while approving the deal last month, noted, “The issues concerning FDI policy need to be addressed in the policy space to ensure that online market platforms remain a true marketplace providing access to all retailers.” On the e-commerce firm’s discounting policy, CCI had said that it something which is already prevalent in the market.
On May 9, Walmart agreed to pay $16 billion for a 77 per cent stake in Flipkart, valuing India’s largest start-up at about $21 billion in what is one of the biggest acquisitions in the country. Last month, Walmart had announced that it has completed the acquisition of Flipkart, making it the largest shareholder in Flipkart after it got an approval from CCI for the deal.
Sticking to guns
Reacting to CAIT’s call for ‘Bharat Trade Month’ on September 8, Walmart on Friday said it remains committed to contributing to the Indian economy by supporting smallholder farmers, manufacturers and kirana customers.