DPIIT received some complaints of e-commerce firms offering deep discounts: Piyush Goyal

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New Delhi | Published: November 22, 2019 2:20:35 PM

In a written reply to the Rajya Sabha, Commerce and Industry Minister Piyush Goyal said that any violation of foreign direct investment (FDI) regulations is covered by the penal provision of the Foreign Exchange Management Act (FEMA), 1999.

piyush goyal, FEMA, ecommerce, industry news, foreign direct investmentThe onus of compliance of the provisions of FDI policy is on the investee entity. (PTI)

The Department for Promotion of Industry and Internal Trade (DPIIT) has received complaints that e-commerce companies are offering deep discounts, indulging in predatory pricing, exercising control over inventory and influencing the prices of goods sold on the platform, Parliament was informed on Friday. In a written reply to the Rajya Sabha, Commerce and Industry Minister Piyush Goyal said that any violation of foreign direct investment (FDI) regulations is covered by the penal provision of the Foreign Exchange Management Act (FEMA), 1999.

The Reserve Bank of India (RBI) administers the FEMA and Directorate of Enforcement is the authority for the enforcement of the act. “Some representations have been received in this department, complaining that e-commerce companies are offering deep discounts, indulging in predatory pricing, engaging in B2C business, exercising control over inventory and influencing the prices of goods sold on the platform,” he said.

The onus of compliance of the provisions of FDI policy is on the investee entity. The policy is made legally enforceable through notifications under FEMA, 1999, by the RBI.

In a separate reply on onions, the minister informed that the prohibition on export of onions has been imposed in view of the prevailing adverse domestic availability and price situation. “No report of adverse impact on onion growers in the country, particularly in Maharashtra, has been received in the ministry,” he said.

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