In a significant development related to war betweene-commerce giants and traders of India, the Union Government has directed theEnforcement Directorate and Reserve Bank of India to take necessary actionagainst Amazon and Walmart-owned-Flipkart.
The Centre has taken strong cognizance of various complaintsmade by the Confederation of All India Traders (CAIT) for blatant violation ofFDI Policy and Foreign Exchange Management Act, 1999 (FEMA) by these companies.
CAIT National President B.C. Bhartia and Secretary GeneralPraveen Khandelwal informed that on several complaints made by the CAIT toUnion Commerce Minister Piyush Goyal in the recent past against Amazon &Walmart-owned-Flipkart, the Department of Promotion of Industries and InternalTrade (DPIIT) of the Ministry of Commerce in its letter issued on December hasasked both Enforcement Directorate and Reserve Bank of India to take necessaryaction against Amazon and Flipkart.
Bhartia and Khandelwal said that in its communication to EDand RBI, the DPIIT has forwarded four complaints of CAIT including violation ofFDI policy in deal between Flipkart and Aditya Birla Group, violation of FDIpolicy related to FDI in manufacturing which is being used for Multi BrandRetailing by various e-commerce companies, violation of FEMA and its rules byAmazon and blatant violation of FEMA and FDI Policy by Amazon and Flipkart andexploitation of loopholes by them.
CAIT said that traders across Country will observe Year 2021as "Bhartiya Vyapaar Samman Varsh" under the aegis of CAIT and allefforts will be made to clean the e-commerce landscape of India and an era ofmanipulations, mal-practices and exploitation will come to end and the CAITwill promote and encourage traders across Country to adopt digital commerce anddigital payments as new instruments to widen the net of business in India.