The Confederation of All India Traders (CAIT), an association of businessmen, has objected to the Aditya Birla Fashion and Retail Limited strategy to raise Rs 1,500 crore through a 7.8% stake sale to the Walmart-owned e-commerce company Flipkart Group.
CAIT has said that the proposed deal is a violation of the government's FDI policy. CAIT has written a letter to Union Commerce Minister Piyush Goyal about this on Tuesday. The letter appealed to the minister not to agree to this deal. CAIT said ABFRL should not be allowed to sell its goods directly or indirectly on the marketplace platform owned by Flipkart Group.
CAIT Secretary General Praveen Khandelwal has appealed to Goyal not to 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. CAIT said that the information given by the company to the stock markets shows the intention of making ABFRL a 'preference seller' in the marketplace owned and operated by Flipkart Group which is a violation of government policy.
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