Cloudtail was formed when Amazon entered a joint venture with Narayana Murthy's Prione Business Services, which began offering goods on Amazon.in after it was set up in August 2014.
CAIT said that the acquisition of 76 per cent stake of Narayana Murthy-led Catamaran Ventures in Prione by Amazon will convert the latter from a marketplace to an inventory-based platform, which is a violation of the FDI policy.