Traders body CAIT on Tuesday said that e-commerce companies including Amazon and Flipkart are violating existing FDI norms through the festival sales.
Traders body CAIT on Tuesday said that e-commerce companies including Amazon and Flipkart are violating existing FDI norms through the festival sales. The government should immediately take action against these companies and ban these mega sales, CAIT also said. “Holding such sales and offering deep discounts are clear violation of Press Note No.2 of FDI policy 2018. The CAIT has earlier written to Union Commerce Minister Shri Piyush Goyal to ban the declared festival sales by these e commerce portals, CAIT Secretary General Praveen Khandelwal said. He also said these e-commerce companies are allowed to do only B2B business but they are indulging in big advertisement campaign.
“These companies are not doing business, this is the business of valuation. They should give details of the top 10 vendors in the last five years,” he said. If the government does not take action, CAIT will approach the court, he added.
Major e-commerce portals recently announced festive sales on account of upcoming Diwali festival in October. “The said statement of both the Companies are devoid of any logic and just an eye wash to keep right the wrong practices they are conducting on their platform,” CAIT added.
The traders body also said that there is no slowdown in the auto sector and the noises are only being made to receive a stimulus package from the government. “There is no slowdown in the domestic automobile sector. They are saying this to get a package from the government,” Praveen Khandelwal added. Citing an example of new vehicle launches, he said companies have received huge number of bookings, which do not reflect any slowdown in the sector.