It seems that Walmart's acquisition of homegrown online retail titan Flipkart may get embroiled in controversy as the Confederation of All India Traders (CAIT) on Wednesday said that it will move the appropriate authority and take legal recourse against the ecommerce deal. United States retail giant Walmart Inc has announced acquisition of 77 per cent stake in Flipkart in its biggest takeover till date.
The deal values the 11-year old Indian e-commerce firm at Dollars 20.8 billion.
The trade body also believes the transaction will create an uneven playing field for the brick and mortar retailers apart from allowing, what it said, Walmart's "hidden agenda" of reaching out to the offline trade via e-commerce.
In a statement, CAIT said its team of lawyers was studying the deal and that the deal would be challenged shortly. When contacted, Flipkart did not respond to emails.
Walmart India chief corporate affairs officer Rajneesh Kumar said the company has been in India for many years and contributing to the economy through job creation, sourcing from small farmers and SME suppliers. E-sellers' representative body, AIOVA has urged the government to set up a regulatory body to monitor various e-commerce marketplaces and their policies towards merchants on these platforms.
Mr Khandelwal said that key issues of the matter is whoever controls the platform control data and digital intelligence.
Khandelwal has demanded that Government should immediately frame a national policy for e commerce and constitute a Regulatory Authority to regulate and e commerce business in India and till such time, the deal should be put in abeyance by the Government and a close scrutiny should be held in the entire deal. "Therefore, being the controller of the Company, Walmart may use the data and other information as per its will and wish and the possibility of compromising the data cannot be ruled out", alleged Khandelwal.