The National Company Law Appellate Tribunal (NCLAT) on Thursday dismissed a petition filed by traders’ body CAIT against CCI nod to Walmart’s $16-billion acquisition of Flipkart.
A two-member Bench of the appellate tribunal headed by Justice S.J. Mukhopadhaya said CAIT failed to establish its allegations against CCI granting approval for Walmart-Flipkart deal.
NCLAT also said Flipkart was not even made party by CAIT in its plea.
“We find no merit in it, accordingly the appeal is dismissed,” said NCLAT, upholding the CCI nod to the deal.
The appellate tribunal also observed that the deal would add value to the Flipkart platform.
The Competition Commission of India (CCI) on August 8, 2018 had said it has approved U.S. retail giant Walmart’s acquisition of Flipkart.
NCLAT had reserved its order on CAIT’s plea in January last year.
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In August 2018, CAIT had filed a petition in NCLAT asking for reversal of the Walmart-Flipkart deal. Orders passed by CCI can be challenged before NCLAT.
On August 18, 2018, Walmart announced that it has completed a deal with Flipkart and holds 77% stake in the Indian e-commerce major. The deal size was $16 billion.
In the following month, NCLAT asked Walmart International Holdings Inc to file a reply before it explaining the way of doing business in India.
CAIT was also asked to file its understanding over Walmart’s business model in India.
In its petition, CAIT mentioned that CCI in its order has ignored the predatory activities carried out by both Flipkart and Walmart in the past.