New Delhi: The Confederation of All India Traders (CAIT) on Wednesday said it has sought Prime Minister Narendra Modi's intervention in the issue of alleged unethical practice of online retailers, including Amazon and Flipkart.
"CAIT today took the matter of unethical business practices of Amazon and Flipkart and other e-commerce companies to the court of Prime Minister Narendra Modi and in communication while briefing him of the crucial issues pertaining to the business model of both the companies has sought his immediate intervention," a CAIT statement said.
"In its communication to the Prime Minister, CAIT has invoked his attention to business model of several FDI backed e-commerce companies prominently Amazon and Flipkart who are blatantly and openly violating the Press Note No.2 of 2018 of FDI policy of the government and thereby creating various distortions, uneven level playing field, unfair and unethical competition and making all efforts to destabilise the long-standing retail trade of India which is largest employment generator in the country after agriculture and making handsome contribution to national exchequer," it said.
The traders' body has strongly objected to the business model of both the companies and said that it is a well-accepted fundamental principle of trade that loss acquiring business entities can not sustain long in the market unless backed by financial institutions or investors to sustain losses.
Expressing surprise, they said that both Amazon and Flipkart are suffering with huge losses of thousands of crores of since last many years but not only continuing their business activities on the full swing but also hold few "big sales" every year.
They further said that as per the latest information, Amazon has registered cumulative losses of over Rs 7,000 crore across various units in the year 2018-19 whereas revenue increased by 54 percent.
On the other hand, Flipkart registered a loss of Rs 5,459 crore whereas combined revenue shot up by 44 percent, it said adding it is a unique case where sales are amazingly growing every year but on the same side losses also increased to a huge extent in case of both Companies.
CAIT in its letter has urged the Prime Minister to intervene in this crucial issue and issue appropriate directions to the concerned authorities so that retail trade in India may conduct its business activities in a fair and ethical business atmosphere.
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Updated Date: Oct 31, 2019 14:50:50 IST