DIPP refers SJM's complaint on Flipkart-Walmart deal to ED,CCI, RBI, IT dept

New Delhi: The Department of Industrial Policy and Promotion (DIPP) has forwarded to various government agencies the complaints raised by RSS-affiliated Swadeshi Jagran Manch (SJM) that had termed the recent acquisition of Flipkart by US retail giant Walmart Inc as illegal.

DIPP has said that the agency only formulates polices on foreign direct investment (FDI), including in e-commerce, and probing and action on any violations of FDI rules rest with other financial watchdogs.

The DIPP has forwarded the concerns raised by SJM to the Reserve Bank of India, Enforcement Directorate, Competition Commission of India and the tax authorities.

“Reserve Bank of India administers the FEMA and Enforcement Directorate under the Ministry of Finance is the authority for the enforcement of FEMA. Violation of FDI policy is therefore, subject matter of RBI/ Enforcement Directorate,” the DIPP said in a letter written to the agencies on May 28. This has been a standard practice by the DIPP to forward any such complaints to the financial watchdogs.

Last week, SJM that advocates ‘economic nationalism’ and a strong critic of Walmart buying Flipkart, had written to the department equating Walmart’s acquisition of Flipkart a “back door entry into multi-brand retail trade” and the group has also alleged Flipkart of “illegally carrying on multi-brand retail trade through ecommerce” in violations of FDI norms.

https://economictimes.indiatimes.com/industry/services/retail/dipp-refers-sjms-complaint-on-flipkart-walmart-deal-to-edcci-rbi-it-dept/articleshow/64404001.cms