Flipkart Unfair Practice: NCLAT overturns ruling of CCI and directs to Re-Probe

Flipkart - chartered accountant - Taxscan

The National Company Law Appellate Tribunal (NCLAT) overturned the ruling of Competition Commission of India (CCI) and directed CCI to conduct a re-probe against the unfair practice of Flipkart.

In the case of All India Online Vendor Association (AIOVA) vs. Flipkart India Pvt. Ltd. and  Competition Commission of India (CCI), the National Company Law Appellate Tribunal (NCLAT) directed the Competition Commission of India (CCI) to re-conduct a probe in this case as earlier the Competition Commission of India (CCI) gave a clean chit to the Flipkart Internet Pvt Ltd and Flipkart India Pvt Ltd, which is engaged in the wholesale trading and distribution of books, mobiles, computers and related accessories. 

The appellant i.e All India Online Vendor Association (AIOVA) in May 2018 approached the Competition Commission of India (CCI) alleging the unfair practices undertaken by Flipkart. The CCI in November 2018 held that the Walmart owned Flipkart is not violating any norms pertaining to e-commerce. Now the All India Online Vendor Association (AIOVA) knocked the doors of the National Company Law Appellate Tribunal (NCLAT).

The issue raised in this case was whether the decision of the Competition Commission of India (CCI) was true or not?

The National Company Law Appellate Tribunal (NCLAT) comprises a judicial member Justice, Venugopal M, technical members, Kanthi Narahari and V. P. Singh set aside the impugned order issued by the Competition Commission of India (CCI) wherein clean chit was given to the Flipkart Internet Pvt Ltd and Flipkart India Pvt Ltd and ordered the Competition Commission of India (CCI) to re-conduct a probe in this case. The tribunal also said that CCI should direct the director-general of its investigative unit to look into the allegations.

Subscribe Taxscan Premium to view the Judgment
taxscan-loader