Walmart-Flipkart deal: Govt says representations from trade bodies alleging irregularities sent to concerned agencies


New Delhi: The federal government on Monday mentioned it has obtained representations from commerce our bodies alleging irregularities in numerous points of the proposed acquisition of Flipkart by Walmart and which have been despatched to involved companies for needed motion.

“Sure,” Minister of State for Commerce and Trade CR Chaudhary mentioned on a query whether or not the federal government has obtained representations from numerous commerce our bodies urging to cite into the modalities regarding the merger of Flipkart and Walmart allegedly circumventing the FDI coverage/pointers on e-commerce.

“The representations obtained have alleged irregularities in numerous points of the proposed acquisition of shares of Flipkart by Walmart. These representations have been despatched to the involved our bodies of the federal government for needed motion,” he mentioned.

Representational picture. Reuters

In Might, the US-based retailer Walmart Inc introduced the acquisition of 77 p.c stake in Flipkart in its largest takeover until date. The deal values the 11-year outdated Indian e-commerce agency at $20.eight billion.

Replying to a separate query, the minister mentioned over the last three years (from July 2015 onwards), in issues relating to 5 circumstances, sure irregularities have come to note as a result of which the State Buying and selling Company had suffered monetary losses.

“Three circumstances have been referred by STC to CBI. FIR has been lodged in a single case with native police. As well as, STC has initiated disciplinary proceedings in 4 circumstances,” he mentioned.

The company has recorded Rs 38 crore revenue after tax in 2017-18 as towards a lack of Rs 166 crore in 2016-17.



Source link