Centre directs ED, RBI to act against Amazon, Flipkart for FDI, FEMA violations – Times of India
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NEW DELHI: In a significant development related to war between e-commerce giants and traders of India, the government has directed the Enforcement Directorate and Reserve Bank of India to take necessary action against Amazon and Walmart-owned-Flipkart.
The Centre has taken strong cognizance of various complaints made by the Confederation of All India Traders (CAIT) for blatant violation of FDI Policy and Foreign Exchange Management Act, 1999 (FEMA) by these companies.
CAIT raised several complaints against Amazon and Walmart-owned Flipkart to Union commerce minister Piyush Goyal in the recent past.
The department of promotion of industries and internal trade (DPIIT) of commerce ministry — in its letter issued on December — has asked both ED and RBI to take necessary action against the e-commerce majors.
CAIT said that the DPIIT has forwarded four of it’s complaints including violation of FDI policy in deal between Flipkart and Aditya Birla Group, violation of FDI policy related to FDI in manufacturing which is being used for multi-brand retailing by various e-commerce companies, violation of FEMA and its rules by Amazon and blatant violation of FEMA and FDI Policy by Amazon and Flipkart and exploitation of loopholes.
The body said that “traders across country will observe 2021 as ‘Bhartiya Vyapaar Samman Varsh’ and all efforts will be made to clean the e-commerce landscape and an era of manipulations, mal-practices and exploitation will come to end.”
The Centre has taken strong cognizance of various complaints made by the Confederation of All India Traders (CAIT) for blatant violation of FDI Policy and Foreign Exchange Management Act, 1999 (FEMA) by these companies.
CAIT raised several complaints against Amazon and Walmart-owned Flipkart to Union commerce minister Piyush Goyal in the recent past.
The department of promotion of industries and internal trade (DPIIT) of commerce ministry — in its letter issued on December — has asked both ED and RBI to take necessary action against the e-commerce majors.
CAIT said that the DPIIT has forwarded four of it’s complaints including violation of FDI policy in deal between Flipkart and Aditya Birla Group, violation of FDI policy related to FDI in manufacturing which is being used for multi-brand retailing by various e-commerce companies, violation of FEMA and its rules by Amazon and blatant violation of FEMA and FDI Policy by Amazon and Flipkart and exploitation of loopholes.
The body said that “traders across country will observe 2021 as ‘Bhartiya Vyapaar Samman Varsh’ and all efforts will be made to clean the e-commerce landscape and an era of manipulations, mal-practices and exploitation will come to end.”
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