The National Company Law Appellate Tribunal (NCLAT) has sought information from US retail major Walmart and Flipkart regarding their business models in India.
The Tribunal has asked Walmart International Holdings Inc to file its reply by September 20. The NCLAT is currently hearing a petition filed by the Confederation of All India Traders (CAIT) which has challenged the Competition Commission of India’s (CCI) decision to give its nod to the Flipkart-Walmart deal.
“Before going into the merit of the appeal, we intend to know the manner in which Walmart International Holdings Inc and Flipkart Pvt Ltd do their business in the relevant market in India,’’ said a NCLAT Bench headed by Justice S J Mukhopadhaya.
It has also asked CAIT to submit an affidavit explaining its understanding of the business model of these two companies within a week. The case has been posted for admission on October 5.
Last month, Walmart Inc had said that it has completed its $16-billion dollar acquisition of Flipkart, making it the largest shareholder in the e-commerce company after it got an approval from CCI for the deal.
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