CloudWalker vs Flipkart

The government has time and again stated that no FDI is permitted in the e-commerce marketplace if it intends to operate on inventory-based model. Moreover, it cannot influence the price offered by traders for the products being sold by them on their platforms. However, recent orders by NCLAT and NCLT, in a matter filed by CloudWalker against Flipkart for non-payment of its dues reveals hidden details of supplies of imported TVs for Flipkart, which would sell the products further through its resellers. It also coerced the importer and attempted to influence the pricing of the products.

The shareholding pattern of Flipkart India Pvt Ltd during the relevant time is shown in diagram, and the FDI norms are given in