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Tuesday, 24 November 2020

Demand for action on Amazon-Flipkart

Demand for action on Amazon-Flipkart: Foreign e-commerce companies accused of violating FDI rules, CAIT demands stern action

Demand for Rs 1.20 lakh crore on Amazon and Rs 3.8 lakh crore on Flipkart
CAIT has launched a 40-day campaign against these companies across the country from November 20

The e-commerce companies are violating the policy and the law, CAIT said. Several complaints are also being received against him, but no action has been taken so far. This is the reason why the compelled CAIT has started a 40-day campaign from November 20 across the country.

CAIT has sent an application to Guruprasad Mohapatra, Secretary, Department of Internal Trade and Industry Promotion (DPIIT) seeking action under the Foreign Exchange Management Act . The organization has found both Amazon and Flipkart guilty of violating separate rules and offenses under the Foreign Exchange Management Act, 1999. At the same time, they have demanded action and fines

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Control over Indian companies

CAIT National President BC Bhartiya and General Secretary Praveen Khanderwal said that even though FDI is not allowed for the event-based model of e-commerce, e-commerce companies are indirectly controlling Indian companies. One of the major violations he has committed is his claim of control of Future Retail Limited by Amazon.
Apart from this, Amazon Retail Limited, which is a multi-brand retailer, has control over it. Flipkart, owned by Walmart, is controlled by Aditya Bidla Fashion & Retail Limited, a multi-brand retail company. Flipkart indirectly controls sellers or their inventory. It has control over its e-commerce marketplace platform.

Amazon indirectly controls vendors or their inventory in the marketplace on its e-commerce platform. Amazon has reportedly invested Rs 35,000 crore to capture the Indian e-commerce market. Which has become a threat to the business of millions of small traders in India.

CAIT seeks penalty under Section 13 of the Foreign Exchange Management Act, 1999, in a memorandum sent to the DPIIT Secretary by Bhartiya and Khanderwal seeking penalty under Section 13 of the 1999 Act. That’s three times the investment, which is also involved in violating FEMA rules.

 It is seeking a fine of Rs 1,20,000 crore on Amazon and Rs 3.8 lakh crore on Flipkart. Retail trade is the lifeline of the Indian economy and provides employment and livelihood to more than 25% of the Indian population. Like other countries, Amazon and Walmart's capital dumping has had the opposite effect on India, where millions have lost their jobs.

Damage to small and medium traders

Bhartiya and Khanderwal said the FEMA rules are to protect the interests of thousands of small and medium enterprises, which cannot stand against foreign companies due to limited resources. Who has been allowed to go to any country and has set a record of destroying the local industry there.

But in doing so he may not know the facts that India is not a republic but the largest democracy in the world and a country ruled by law. He should therefore immediately stop violating Indian law.

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