After Amazon, Flipkart seek extension, Commerce & Industry Ministry against extending Feb 1 deadline

By: |
New Delhi | Updated: January 25, 2019 9:08:29 AM

On December 26, 2018, the government tightened norms for e-commerce firms and barred online retailers like Flipkart and Amazon from selling products of the companies in which they have stakes.

Amazon, Flipkart, Commerce & Industry Ministry, CAIT, foreign direct investmentOn December 26, 2018, the government tightened norms for e-commerce firms and barred online retailers like Flipkart and Amazon from selling products of the companies in which they have stakes.

The commerce and industry ministry is not in favour of extending the deadline of February 1 for implementing the revised guidelines for e-commerce companies having foreign direct investment, sources said. Both Amazon and Walmart-owned Flipkart have sought an extension of the February 1 deadline for complying with the revised norms, stating that they need more time to understand the details of the framework. While Amazon has asked for time until June 1 this year, Flipkart has asked for six months.

On December 26, 2018, the government tightened norms for e-commerce firms and barred online retailers like Flipkart and Amazon from selling products of the companies in which they have stakes. The government also prohibited e-commerce companies from entering into an agreement for exclusive sale of products. As per the revised guidelines, a vendor cannot procure more than 25 per cent of products from group companies of the same marketplace where they intend to sell them.

Also read| Reliance ecommerce to challenge Amazon, Walmart, can become India’s Alibaba, says report 

“The ministry has received representations from Amazon and Flipkart for more time. Internal discussions are on. But the ministry is not in favour of extending the deadline,” sources in the know of the matter said. Domestic traders body Confederation of All Indian Traders (CAIT) has asked the ministry not to extend the deadline for implementation of the changes.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop