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Representations against Flipkart-Walmart deal sent to concerned dept: Govt

The corporation has recorded Rs 38 crore profit after tax in 2017-18 as against a loss of Rs 166 crore in 2016-17.


PTI 06 Aug 2018, 11:50 AM India

The government today said it has received representations from trade bodies alleging irregularities in various aspects of the proposed acquisition of Flipkart by Walmart and that have been sent to concerned agencies for necessary action.

"Yes," Minister of State for Commerce and Industry C R Chaudhary said on a question whether the government has received representations from various trade bodies urging to quote into the modalities concerning the merger of Flipkart and Walmart allegedly circumventing the FDI policy/guidelines on e-commerce.

"The representations received have alleged irregularities in various aspects of the proposed acquisition of shares of Flipkart by Walmart. These representations have been sent to the concerned bodies of the government for necessary action," he said.

In May, the US-based retailer Walmart Inc announced acquisition of 77 per cent stake in Flipkart in its biggest takeover till date. The deal values the 11-year old Indian e-commerce firm at USD 20.8 billion.

Replying to a separate question, the minister said during the last three years (from July 2015 onwards), in matters relating to five cases, certain irregularities have come to notice due to which the State Trading Corporation had suffered financial losses.

"Three cases were referred by STC to CBI. FIR has been lodged in one case with local police. In addition, STC has initiated disciplinary proceedings in four cases," he said.

The corporation has recorded Rs 38 crore profit after tax in 2017-18 as against a loss of Rs 166 crore in 2016-17.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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