In a letter sent to Union Commerce Minister Piyush Goyal, the Confederation of All India Traders (CAIT) stressed the need for a new press note in place of Press Note No. 2 of the FDI Policy 2016/2018. In a letter sent to Goel, CAT national president BC Bhartia and national general secretary Pravin Khandelwal said that foreign companies like Amazon and Flipkart are openly mocking the FDI rules in the e-commerce section of Press Note No 2 of the FDI Policy 2016
They are bent on completely ruining the Indian retail sector using their thick pockets and they will not stop until 40 crore citizens of India are brought to the brink of starvation. This day is not less than a robbery. Not only is the effort being made to control the e-commerce business but it is also trying to completely dominate Indian retail by implementing its secret agendas.
Willful violation of rules
Bhartia and Khandelwal said that instead of respecting the law of the country, every rule of Press Note No. 2 is being deliberately put on hold by these foreign companies. It is thinking to make India a republic. In view of such a worsening situation and especially in the present day corrupted e-commerce business, it is the responsibility of the government to protect the sanctity of laws, rules and regulations related to FDI in e-commerce. Hence the need for a new strong press note increases even more.
New press note to be released soon
Emphasizing the early release of a new press note, the two business leaders said that it is necessary to protect the law of the country so that these foreign companies can give a clear message that FDI in e-commerce is very necessary and mandatory and Violation of the restrictions imposed under it will not be easy. Bhartia and Khandelwal said that such control allows them a preferential selection of vendors along with basic pricing, deep discounting, capital dumping. And all this is being done with the intention of gaining market share and earning illegitimate financial benefits at the cost of livelihood of 8.5 crore small traders, their dependent families and employees.
Control over the e-commerce business
In order to circumvent the restrictions imposed on the marketplace model of commerce, a common practice is being adopted by these large foreign e-commerce entities under which they become vendors and become affiliate companies through which they gain complete control over their business. Could. To address these shortcomings, CAT has sought to include important points for issuing a new press note on FDI policy in e-commerce.
Need to improve the marketplace model
To clearly demarcate the boundary between the ‘marketplace model’ and the ‘inventory-based model’, any type of direct / indirect, equity or economic relationship must be prohibited between the commerce marketplace entity and the vendor on its platform. For this purpose, any type of relationship between ‘market entity’ and ‘seller’, whether direct or indirect, equity or economic or otherwise, should be strictly prohibited.
Convenience between buyer and seller
Such prohibited relationship between the marketplace and the seller may be included but not limited to group companies, affiliates, related parties, associate companies, beneficial owners or any other person who exercises such control. can do. The market-based model of commerce would mean the provision of an information technology digital platform by the e-commerce entity, which only serves as convenience between buyer and seller.
Consumers get full rights
The inventory-based model of commerce would mean e-commerce activity where the list of goods and services would be owned by the e-commerce entity and sold directly to consumers. The Commerce Marketplace unit and its group companies, directly or indirectly, used the inventory Will not own or control, goods or services sold on the market. Such ownership or control over their inventories would present the business in an inventory-based model.
(With IANS input)
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