CAIT’s Complaints About Amazon and Flipkart’s FDI and FEMA Violations

In December last year, the DPIIT urged the Reserve Bank of India and the Compliance Directorate to take the requisite steps following CAIT’s complaints about Amazon and Flipkart’s FDI and FEMA violations.

On Sunday, the Traders’ Body Confederation of All India Traders (CAIT) requested the “immediate intervention” of Prime Minister Narendra Modi to streamline e-commerce rules and policies to “save domestic trade from the clutches of big e-commerce companies’ malpractices.” In a letter addressed to PM Modi, the federation alleged a breach of the laws by an unholy relation between banks and e-commerce companies.

Also Read – PM Modi Stresses on Tech and Startups To Achieve Self-Reliant India or ‘Aatmanirbhar Bharat’

“It also accused e-commerce marketplaces dominated by Amazon and Flipkart of “openly breaching FDI rules, laws and regulations without fear of law by engaging in unfair pricing, deep discounting, loss financing, inventory management, sales of advertised goods exclusively on their respective portals, which are explicitly limited Press Notice 2 of G’s FDI policy.

“Press Note 2 released in December 2018 by the Department for the Promotion of Business and International Trade (DPIIT) noted that e-commerce markets” do not require any vendor to sell any commodity exclusively on its website,” CAIT said that in Press Note No. 2 of the FDI Regulation, e-commerce firms have sought different escape routes,

And thus, PM Modi demanded, “a new press release-blocking all escape routes and abolishing all such provisions that may prompt these businesses to breach the rules or policies.” It also called for a regulatory authority to control and track the e-commerce sector along with an e-commerce policy that prescribes specified e-commerce business criteria for vertical and organized e-commerce development.

Nevertheless, “no such investigation has been launched on the matter by RBI or ED,” MoS Commerce and Industry Som Parkash said in a written answer to a question the last Rajya Sabha we said in a written answer to a question in the Rajya Sabha.

Read Latest News

Published by

Vishal

He likes to write content related to Startups and Businesses. Vishal is a BCA final year student who writes well-researched content in Startupcrow.com View all posts by Vishal

Leave a Reply

Your email address will not be published. Required fields are marked *