Confederation of All India Traders (CAIT) which is a traders body has recently written to Prime Minister Narendra Modi asking for “strong action” against e-commerce firms for alleged negligent the FDI policy set up by them.
It also attempted a demand for setting up an empowered supervisory authority to organise and monitor the e-commerce businesses and industries in India.
In the message to the Prime Minister, the Confederation of All India Traders (CAIT) insisted that “Big e-commerce companies having deep pockets are leaving no stone unturned in monopolising the e-commerce business and retail trade of India with their malpractices and violating FDI policy of the government and relevant laws and rules.”
According to Hindustan Times, the traders’ body claimed that numerous government authorities have refused to protect the sanctity of the administration and law of the government.
CAIT also stated in their letter that though the Ministry of Commerce had taken some actions to influence upon them to conduct their business activities under the preview of the law whereas these e-commerces were avoiding and violating laws.
CAIT had recently accused e-commerce giant Amazon of infringing Foreign Direct Investment (FDI) policy and Foreign Exchange Management Act (FEMA) patterns. In a letter to Commerce Minister Piyush Goyal, it had claimed that the online retailer has not asked for government’s approval for conducting multi-brand retail activities in India and required action and intrusion of the highest penalty upon the company.
Also, it had raised objections over Aditya Birla Fashion and Retail’s plans to increase INR 1,500 Cr (about $203 Mn) by distributing 7.8% stake to Walmart-owned Flipkart Group, pointing that the proposed deal breaks the government’s FDI policy.
In May, CAIT had joined up with the Department for Promotion of Industry and Internal Trade (DPIIT) to combine millions of Kirana shops to digital commerce. The tradesmen’s Association has explained that the platform will be very different from the private e-commerce companies and will focus on retailers and consumers.
Unhappy with the INR 25K fine levied by the MCA on Amazon India, for not providing the details of ‘country of origin’ of stocks displayed on its platform, CAIT had asked a 7-day ban on the tech giant.