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Flipkart Aditya Birla Fashion’s Proposed Equity Deal Violates FDI

Flipkart Aditya Birla Fashion’s proposed equity deal violates FDI policy: CAT.

Merchants’ Confederation of All India Traders (CAT) has objected to the Aditya Birla Fashion and Retail Limited (ABFRL) plan to raise Rs 1,500 crore by selling a 7.8 percent stake to Walmart-owned e-commerce company Flipkart Group.

CAT has said that the proposed deal is a violation of the government’s foreign direct investment (FDI) policy. CAT has written a letter in this regard to Union Commerce Minister Piyush Goyal on Tuesday.

The letter urged the minister not to allow the deal. CAT said that ABFRL should not be allowed to sell its goods directly or indirectly on the marketplace platform owned by the Flipkart Group.

CAT general secretary Praveen Khandelwal has urged Goyal not to allow the proposed FDI unless ABFRL assures that it will not sell its finished goods through the marketplace of Walmart-owned Flipkart Group.

Kat said that the information the company has given to the stock markets shows the intention of making ABFRL a ‘preference seller’ on the marketplace owned and operated by the Flipkart Group, which is a violation of government policy.

CAT said that the current FDI policy does not allow any foreign company to invest in any company in which it is engaged, in any kind of alliances in multi-brand retail trade, including e-commerce, whether it is an online e-commerce platform. Why not join

There are signs of rapid improvement in the country’s economy. According to a report by SBI Research, there was an increase in sending money to migrant laborers in September and it reached above the level of February.

Similarly, SBI Research’s report released on Tuesday said that the number of new registrations in Employees Provident Fund Organization (EPFO) has also increased.

Another good thing according to the report is the large increase in the number of Jan Dhan accounts during this period. Their number has now crossed 41 crores.

The money sent by migrant laborers to their homes dropped drastically after the lockdown in April. It saw improvement from June and July.

While the September figures have also surpassed the February levels before the Covid-19 pandemic. This shows that migrant laborers are returning to work for livelihood.

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