Ratan Tata’s maker of portable devices with backing, GOQii Technologies, said it will take legal action against the deep discount of its Flipkart products, which violated its sales agreement with the market.
In a legal notice sent Saturday to the online market owned by Walmart, GOQii said that said discount of its products also violates the policy of foreign investment in electronic commerce.
The company has contacted the DIPP and the Internal Trade and the Competition Commission.
GOQii Technologies founder Vishal Gondal said it has an agreement with Flipkart on the sale of its fitness bands. Since the discounts have not stopped even after sending the legal notice, it will now take the marketplace to court.
Gondal said the deep discounting on its products started in the first week of May. Its products were sold at “much below the cost price and against the sales agreement whereby any such discounting is offered at mutual terms,” he said.
Gondal has contacted Flipkart, including the chief executive officer, several times to stop the discount but to no avail.