Traders Body Confederation of All India Traders (CAIT) has questioned the proposed deal of Flipkart Group (Flipkart) owned by Aditya Birla Fashion and Retail and Walmart. Kat has said that this deal is a violation of the FDI policy of the government. Aditya Birla Fashion and Retail plans to sell 7.8 per cent stake to Flipkart for about Rs 1500 crore. CAT has sent a letter to the Union Commerce Minister Piyush Goyal demanding that the deal not be allowed and said that the government should first understand the terms of the deal and how the FDI policy is being violated, only by removing it Allow it.
According to CAT national general secretary Praveen Khandelwal, in the information given to the stock exchange, Aditya Birla Fashion Retail has told that Flipkart, a company owned by Walmart, is buying 7.8 percent stake in its company. After this deal, Aditya Birla Fashion Retail will act as a preferred seller on the Flipkart ecommerce platform. This is not directly the press note of the FDI policy. Para 5 .2.15.2 .4 (v) of 2/2018 is a violation.
Not allowed in retail trading!
The current FDI policy does not allow any foreign company to enter into any company in which it invests, in any kind of agreement in multi-brand retail trading, including e-commerce. Then it should be connected to online e-commerce platform or to sell goods on ecommerce under business to business.
According to this provision, after investing Flipkart, Aditya Birla Fashion Retail gets banned for selling its goods on Flipkart or any e-commerce portal related to it. Whereas, in contrast, Aditya Birla Company in its announcement statement to the stock exchange has said to sell its goods on the portal of Flipkart.
Small traders suffer even bigger than Corona
CAT national president BC Bhartia says that the government had already understood this issue and banned this possibility in the FDI policy. Due to this, by increasing trade through e-commerce in the country, small traders of the country should also not be harmed. CAT says that this foreign investment is happening at a time when foreign ecommerce companies have already badly damaged the retail business of our country. Later the corona epidemic has also given a major blow to the retail business.
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