Business

CAIT URGED PM TO FORM A GOM ON E COMMERCE

New Delhi: In a communication sent to Prime Minister Shri Narendra Modi today, the Confederation of All India Traders (CAIT) while expressing its concern on continued blatant violation of FDI policy by e commerce Companies including Amazon & Flipkart has urged to form a Group of Ministers on e commerce on issues of e commerce.

CAIT National President Shri B.C.Bhartia & Secretary General Mr. Praveen Khandelwal while suggesting the formation of Group of Ministers added that the proposed GOM should look in to the issues and complaints in depth and recommend necessary measures as it was done in case of e pharmacy when a GOM was formed under the Chairmanship of Shri Rajnath Singh, Hon’ble Minister for Defence.

Both Mr. Bhartia & Mr. Khandelwal further said that the proposed GOM will be the right forum to decide and recommend the steps which may bind the e commerce Companies to follow FDI policy both in letter and spirit and will also force them to immediately discontinue their unethical and unfair business practices. The GOM may also deliberate on proposed e commerce policy and its early implementation and prohibition of Cash on delivery (COD) system and rather make digital payments mandatory in e commerce business. The GOM should also deal with the complaints of huge losses of GST and Income Tax revenue being caused by e commerce companies to Government. It should also deliberate upon the aspect of job losses due to e commerce business.

In its communication to Prime Minister, they reiterated that the e commerce business is highly vitiated by e commerce Companies with their continued practices of violation of FDI policy and indulging into predatory pricing, deep discounting, controlling inventory, preferential seller system, exclusivity and thereby causing huge GST and Income Tax revenue loss to Union and State Governments.

The e commerce business is greatly under the grip of vicious clutches of e commerce Companies prominently Amazon & Flipkart destroying the business of small traders and may result into big loss of unemployment as well.

However, the CAIT has appreciated Shri Piyush Goyal, Hon’ble Minister for Commerce and Industry for taking steps on its complaints and on several occasions he has very strongly warned the Companies to follow FDI policy but e commerce companies are continuing violation of FDI policy and their unethical business practices.

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