E-commerce companies violating FDI policy, need empowered regulatory authority, claims CAIT

On Sunday, the Confederation of All India Traders (CAIT) penned a letter to Prime Minister Narendra Modi asking for “strong action” against e-commerce firms allegedly violating foreign direct investment (FDI) policy. The traders’ body also sought the setting up of an empowered regulatory authority to “monitor the e-commerce business in India”. [caption id=“attachment_9064801” align=“alignnone” width=“904”]  CAIT’s letter to Prime Minister Narendra Modi.[/caption] “… we are pained to inform you 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,” CAIT, in the letter to the prime minister, alleged. “Despite making several complaints against them, so far no concrete action has been taken and therefore it has become a major roadblock for small businesses to conduct online business activities,” the letter further stated. CAIT also claimed that various government authorities, despite being custodians of the law, have “failed to protect the sanctity of the policy and law of the government.” “Though the Ministry of Commerce has taken some initiatives to impress upon them to conduct their business activities under the purview of the law but these e-commerce companies have been avoiding the law on one pretext or the other,” CAIT further stated in the letter. The traders’ body has for long been at loggerheads with Amazon and Flipkart, claiming that small retailers have been suffering at the hands of the e-commerce majors and seen their business decline.