India’s National Company Law Appellate Tribunal (NCLAT), a local semi-judicial body, has Requested a WalmartDevice to explain its business model in India, following an objection raised by a Dealers body against Its Own $16 billion (Approximately Rs. 1.15 lakh crores) acquisition of e-commerce Company Flipkart.
NCLAT, an appellate body for the Competition Commission of India (CCI), issued the order to Wal-Mart International Holdings, the record dated Sept. 6 showed.
“Before going into the merit of the appeal, we mean to be aware of the way Wal-Mart International Holdings Inc and Flipkart Private Ltd do their business in the relevant market in India,” NCLAT said in a note, asking Wal-Mart to file its reply by Sept. 20.
The order relates to an appeal petition filed by the Confederation of All India Traders against CCI’s approval of the Walmart-Flipkart deal last month.
The dealer body said the combination would create unfair competition and drive neighborhood convenience stores out of business.
Walmart finished the acquisition of 77 percent stake in Flipkart on August 18, in one of the largest US overseas investment.
© Thomson Reuters 2018