A leading advocate for small traders and businesses in India, the Confederation of All India Traders (CAIT) on Tuesday opposed Aditya Birla Fashion and Retail Limited’s recent plans to raise Rs. 1,500 crore by issuing 7.8 per cent stake to Flipkart Group.
The traders’ body alleged that the aforementioned deal violates the Government’s FDI policy.
Underlining its objections, CAIT wrote a letter to Commerce Minister Piyush Goyal urging him to keep ABFRL away from directly or indirectly selling its inventory on the marketplace platforms that are owned or controlled by the Walmart-owned e-commerce group.
The letter also had a request for the minister to not let the proposed FDI process “unless they undertake that ABFRL will not be selling its inventory through any of the marketplace platforms owned/controlled by Flipkart Group.”
Also underlining in the letter, CAIT mentioned, “In its filing to the stock exchange, a clear intent to make ABFRL a preferred seller on the marketplaces owned and operated by Flipkart Group is shown which strictly violates the policy of the Government.”
According to CAIT, the current FDI policy doesn’t allow a foreign firm to take up any form of multi-brand retail trading.