CAIT: Follow FDI Norms

CAIT demands strict action against the foreign e-Commerce giants Amazon and Flipkart for blatantly violating the FDI norms.

Continuing its fight against mal-practices of major e-commerce Amazon & Walmart owned Flipkart, the Confederation of All India Traders (CAIT) today strongly demanded strict action against foreign e-commerce Amazon & Flipkart for blatantly violating the FDI norms. “It’s a peculiar situation where e-commerce players are violating the policy and the law and inspite of making specific complaints against them, no visible action is taken so far which has compelled the CAIT to launch a 40 days decisive war campaign against such e-commerce companies-said the CAIT

Making a complaint against Amazon, the CAIT has sent a communication to Shri Guruprasad Mohapatra, Secretary, Department for Promotion for Industries & Internal Trade ( DPIIT) of Ministry of Commerce. In its memorandum, the CAIT has demanded strict action and penalty against both Amazon and Flipkart for the various violations and offences under the Foreign Exchange Management Act, 1999 and the rules/regulations framed thereunder.

CAIT National President Mr B C Bhartia & Secretary General Mr. Praveen Khandelwal said that  no permission for FDI could have been granted for the inventory-based model of e-Commerce being pursued by both of these companies by the way of indirectly controlling the inventories of most prominent sellers on their e-commerce marketplace platform.Some of the major violations by them includes  Amazon controlling Future Retail Limited (“FRL”), a multi-brand retailer. Amazon controlling More Retail Limited (“MRL”), a Multi-brand retailer, Walmart(Flipkart) controlling Aditya Birla Fashion & Retail Limited, a Multi-brand Retail company, Flipkart is directly/indirectly controlling the sellers and/or their inventory on their e-commerce marketplace platform., Amazon directly/indirectly controlling the sellers and/or their inventory on their e-commerce marketplace platform, Amazon Retail Pantry selling multi-brand food products on its e-commerce marketplace platform, Amazon has reportedly invested in excess of Rs. 35,000 crores for capturing the e-commerce market and in the process has caused a death knell for crores of small merchants in India.

Mr.Bhartia &  Mr. Khandelwal said that Amazon’s and Walmart’s activities in India raises the questions that Will the sovereignty of the nation prevail or multinationals like Amazon and Walmart be allowed to trample the laws of the country? Will large global corporations who operate to the detriment to the people of India be allowed to go scot free? Will Amazon/Walmart be made to realize that no one is above the law of the land?  Will Amazon/Walmart be made to realize that India is not a banana republic and is instead the largest democracy of the world and is governed by rule of law .

Mr. Bhartia & Mr. Khandelwal said that in its communication to Secretary DPIIT, the CAIT has demanded imposition of penalty, under section 13 of the Foreign Exchange Management Act, 1999 which is three times of the investments, that are in contravention to the FEMA rules. The retail trading is the lifeline of Indian economy and provides employment & livelihood to more than 25% of the Indian population. Therefore, the objective of the present FDI policy and FEMA Rules is to ensure regulation in the Multi-Brand Retail sector and has prohibited the FDI in the inventory-based model of e-commerce. Like other countries, the ill effects of capital dumping by Amazon and Walmart have also been felt in India where lakhs of people are getting unemployed every month due to the capital dumping and predatory pricing by these multinational companies.

Mr. Bhartia & Mr. Khandelwal said that FEMA Rules are intended to protect the interests of the thousands of small and medium enterprises who may not be able to stand up to foreign corporations with virtually unlimited resources and a proven track record of decimating the local industry in countries where they have gained entry. It has come to light that both Amazon and Flipkart(Walmart) companies have been conducting their activities in blatant violation of Foreign Exchange Management Rules, 2019. While doing so, they are completely oblivious of the fact that India is not a banana republic, instead, it is the largest democracy of the world and is governed by rule of law. Therefore, they should immediately stop violating the Indian law

Published by Naresh Sagar

Mentor MSME, Motivator, Media Event Org, Management fiscal & Water management.Social Media branding,Internet broadcasters,Propunder of Indian Philosophy

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: