The comments assume significance as global retail giant Walmart is inching closer to sealing the deal to buy a majority stake in Flipkart for as much as $12 billion, even though rival Amazon is still jostling to turn the deal in its favour.
The Flipkart buy may be one of the largest deals in the retail sector and by far, the biggest in the country's booming e-commerce market.
"This (Walmart-Flipkart) deal should not be allowed since it will encourage more loss funding and predatory pricing on e-commerce which is already gripped with malpractices," CAIT said.
It also alleged that Walmart after failing to enter India in retail sector through FDI has chosen e-commerce route, which will be quite harmful for the trading community.
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