COMMERCE MINISTRY SENT CAIT COMPLAINT TO ED & RBI FOR ACTION
Walmart-Flipkart deal have 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 of the Confederation of All India Traders (CAIT) made against e commerce companies for indulging into malpractices & predatory pricing. The Ministry has by sent the complaint to Enforcement Directorate and Reserve Bank of India advising them to take action.
CAIT National President Mr. B.C.Bhartia & Secretary General Mr. Praveen Khandelwal said that this time we shall be pursuing the matter with both ED & 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.
In its complaint made to Mr. Suresh Prabhu, Minister of Commerce, the CAIT has complained that the e-commerce market in India which remains very critical since its inception in the Country due to ill designed business practices adopted by various leading E Commerce players with a single motto of controlling and dominating retail trade by offering deep discounts and predatory pricing has vitiated the basic fundamentals of e-commerce and in the absence of any policy both in e-commerce and retail trade and easily circumventing the law,
It further said that e-commerce platforms are grossly and openly flouting Press No.3 of FDI Policy issued on 29th March,2016 which restrains e commerce companies for influencing the prices and make responsible for creating an even level playing filed but despite several complaints Government choose to remain a mute spectator giving them an open play ground to play the game with their own rules.
In the wake of current situation, the CAIT has demanded that till the time the e commerce policy is formulated, strict directions should be issued to adhere to Press Note No.3 and implement the same in toto. To monitor the same a Special Task Force should be constituted with Officials and representative of trade & e commerce platforms. Further, we should be made part of the formulation of e commerce policy.