Expressing surprise at the “arbitrary” decision of the AAP government to disallow FDI in multi-brand retailing, the Congress party plans to take up the issue in the state assembly.

“I don’t think there is legal backing for what (Delhi) government has done. We will call for a discussion on the matter in the Delhi assembly,” Delhi Pradesh Congress Committee (DPCC) chief Arvinder Singh Lovely told reporters in New Delhi today after meeting Commerce and Industry Minister Anand Sharma.

Besides Lovely, Congress MLA Haroon Yusuf was present at the meeting.

In a major policy reversal, the Aam Aadmi Party (AAP) government wrote to the Centre to withdraw the approval given by the previous Sheila Dikshit government for FDI in multi-brand retailing in Delhi, saying the entry of global chains such as Walmart and Tesco in India would cause large-scale job losses.

Asked if the Congress would withdraw support to the minority AAP government on the FDI issue, Lovely said, “It is not the question of withdrawing support. But one thing is sure that we will go and see the details and legality of the letter (written to the Commerce Ministry).”

He said a letter that the AAP had written to the Congress did not mention the issue of FDI in multi-brand retailing.

“If the government has to take some major decisions, there are certain procedures which need to be followed. We are surprised this is an arbitrary decision. A minority government cannot one day write a letter and say that Delhi will not have FDI,” Lovely said.

Commerce Minister Sharma described the Delhi government’s decision to disallow FDI in multi-brand retailing as “abrupt, irresponsible and ill-considered,” saying India is not a banana republic where policy decisions can be reversed.