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Informist, Tuesday, Feb. 3, 2026

 

NEW DELHI – The Supreme Court Tuesday asked the National Company Law Appellate Tribunal to pass a fresh order on allegations of abuse of dominant position against Flipkart India Pvt. Ltd. and Flipkart Internet Pvt. Ltd. The top court set aside the appellate tribunal's 2020 order that had asked the Competition Commission of India to direct its director general for a probe against Flipkart India and Flipkart Internet.

 

The top court noted that the appellate tribunal passed the order based on the income tax department's observation in a tax case against Flipkart Internet. However, the case against Flipkart was set aside by the Income Tax Appellate Tribunal and, therefore, principles of fairness required the matter to be re-examined by the National Company Law Appellate Tribunal. 

 

The case has its genesis from All India Online Vendors Association filing a complaint with the Competition Commission of India against both the Flipkart companies. The association said that Flipkart India sold goods to companies like WS Retail Services Pvt. Ltd., which was owned by founders of Flipkart Internet till 2012. The sale of goods was made at discounted price to Flipkart Internet and thereafter, these were sold on the platform operated by the company, said the association.

 

Flipkart India is engaged in wholesale trading, distribution of books, mobiles, computers and related accessories. Flipkart Internet is engaged in e-commerce marketplace business under the brand name "Flipkart.com". 

 

The association said that Flipkart Internet connects buyers and sellers on its electronic marketplace platform, for which it receives platform fee from the registered sellers. The act of Flipkart India selling goods to companies like WS Retail at discounted price and, thereafter, the same being sold on the platform operated by Flipkart Internet on discounted prices, was in the nature of preferential treatment to certain sellers, said the association. 

 

In 2020, the appellate tribunal passed its order on the basis of income tax department's observation in a tax case against Flipkart Internet. The appellate tribunal said according to the income tax appellate tribunal order, Flipkart India was selling goods to retail sellers like WS Retail and others who subsequently, would sell their goods as sellers on the internet platform under the name Flipkart.com, which was Flipkart Internet. Challenging the appellate tribunal's order, Flipkart companies moved the apex court.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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