Comm min forwards complaint of FDI policy violation by e-comm cos to ED, RBI: CAIT

By PTI  
Thursday, June 7, 2018

New Delhi, Jun 7 (PTI) Traders body CAIT today said the commerce and industry ministry has forwarded its complaint with regard to violation of FDI policies by e-commerce firms to the RBI and Enforcement Directorate (ED) for necessary action.

"Enforcement Directorate and Reserve Bank of India are requested to take necessary action," the ministry said in an office memorandum, as per the CAIT.

As per the memorandum, the CAIT has inter-alia alleged that e-commerce companies are violating FDI policy on e-commerce.

It requested the government to issue directions for adherence of FDI policy on e-commerce and to establish a special task force to monitor e-commerce platforms, it added.

"Walmart-Flipkart deal has to face a new attack as in a major development and bowing to pressure from traders lobby, the Ministry of Commerce has at last acted upon the complaint...made against e-commerce companies for indulging into malpractices and predatory pricing," the traders body said in a release.

Emails sent to Flipkart and Amazon India did not elicit any response.

In its complaint made to Commerce and Industry Minister Suresh Prabhu, CAIT had said e-commerce platforms are "grossly and openly" flouting FDI policy which restrains them for influencing the prices.

CAITs complaint further said despite several representation, the government "chose to remain a mute spectator".

"This time we shall be pursuing the matter with both ED and RBI so that e-commerce companies, including Flipkart and its newly owner Walmart, should not escape from the liability of malpractices, predatory pricing and deep discounting," said CAIT National President B C Bhartia.

CAIT has also filed a petition before the Competition Commission of India (CCI) against the USD 16 billion Walmart-Flipkart deal. PTI RSN NKD CS MKJ MKJ

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