All India Online Vendors Association on Monday wrote a letter to the corporate affairs ministry alleging that around 500 sellers of Snapdeal have not been paid dues and urged that the company’s plans of a merger with Flipkart should not be allowed till 75% of the sellers dong active business on its platform give their assent. The complain is that several sellers have not been paid by Snapdeal for months and fresh cases of unpaid dues are also piling up. The asssociation represents about 2,000 sellers listed on e-commerce horizontal platforms such as Snapdeal, Flipkart, and Amazon, among others.
“We would like to inform you via this e-mail that more than 500 sellers have complained to us regarding unsettled financial matters with the current management of Snapdeal,” AIOVA said in an e-mail to Tapan Ray, secretary, corporate affairs ministry.
The association said that it has received complaints from sellers regarding their disputed payments with Snapdeal. “We had compiled and submitted a small list to the management of Snapdeal informally in March, however they never acted on the same,” the e-mail added. Japan’s SoftBank, which is a majority shareholder in Snapdeal is currently in talks with other investors to sell the platform to rival and bigger e-commerce firm Flipkart.