Flipkart-Aditya Birla Fashion proposed deal violates govt’s FDI policy: CAIT

Traders’ body CAIT on Tuesday raised objections over Aditya Birla Fashion and Retail’s plans to raise Rs 1,500 crore by issuing 7.8 per cent stake to Walmart-owned Flipkart Group, alleging that the proposed deal violates the government’s FDI policy.

The Confederation of All India Traders (CAIT) wrote to Commerce Minister Piyush Goyal in this regard urging him to prohibit Aditya Birla Fashion and Retail Ltd (ABFRL) from directly or indirectly selling its inventory on the marketplace platforms owned/controlled by the Flipkart Group.

It also requested the minister “to not allow the proposed FDI unless they undertake that ABFRL will not be selling its inventory through any of the marketplace platforms owned/controlled by Walmart-owned Flipkart Group”.