Traders’ body says the deal violates restrictive provisions in FDI policy issued through press note 2 of 2018, which protects small traders from capital duping by MNCs
CAIT said the FDI policy prohibits a foreign company to venture in any forms of multi-brand retail trading including through ecommerce
Last week, ABFRL said its board approved the proposed stake sale
Traders’ body Confederation of All India Traders (CAIT) has raised objections over Aditya Birla Fashion and Retail’s plans to raise INR 1,500 Cr (about $203 Mn) by issuing 7.8% stake to Walmart-owned Flipkart Group, alleging that the proposed deal violates the government’s FDI policy.
In a letter to Commerce Minister Piyush Goyal CAIT urged the government to prohibit Aditya Birla Fashion and Retail Ltd (ABFRL) from directly or indirectly selling its inventory on the marketplace platforms owned by the Flipkart Group.