“Walmart is nothing but a US version of The East India Company which conquered the Country. It is highly regretted that some of the people for just merely earning the profit have sold major chunk of e commerce to Walmart’- said the Confederation of All India Traders (CAIT) in a strong worded communication to Mr. Suresh Prabhu, Union Minister of Commerce today. The CAIT has also said that if they are not heard, they will be left with no other alternative but to knock the doors of Prime Minister.
CAIT National President Mr. B.C.Bhartia & Secretary General Mr. Praveen Khandelwal said that we apprehend that story of The East India Company might happened again as through the way of E Commerce, Walmart will be entering retail trade and will indulge into predatory pricing, deep discounting and thereby creating an uneven level playing field. It will source globally the cheapest material and will dump in the Country to wipe out the Competition. Sadly as of now no rule or law exist which can put restrictions on such practices of any Company.
In its communication to Mr. Prabhu, the CAIT has said that Walmart-Flipkart deal needs a thorough investigation from every angle. It is apprehended that the deal is bound to circumvent established laws and FDI policy of the Government and through e commerce, the ultimate object of Walmart is to enter the retail trade of the Country. In absence of any policy on e commerce or retail trade, it would be easy for the Walmart to reach out to retail market which otherwise it can not enter due to FDI policy. It is not merely a merger of two companies but will have greater ramifications on retail trade & economy of the Country.
The CAIT has highly regretted that despite its filing objection with Commerce Minister office, what to say of discussing the issue, it was never thought fit to even acknowledge the letter. Such a casual approach towards retail trade is un called for and runs against the principle of natural justice. Opportunity for placing our view point should be given against a deal which we feel will run against the interests of the Country.
It further said that since the matter also relates to data security, controlling entire chain from inventory to last end consumer which will turn out to be a monopoly , a peculiar situation will arise which will be to the disadvantage to brick & mortar shops and economy as well.