Aiming to make India\u2019s e-commerce market free from malpractices and predatory pricing, the Confederation of All India Traders (CAIT) - India\u2019s largest traders association - has moved the Enforcement directorate (ED) against Flipkart, alleging that the online market platform is grossly flouting the Foreign Direct Investment (FDI) policy of the government and circumventing the law in its favour so as to grab market share. \u201cThe CAIT has urged the ED to investigate business module of other E-Commerce Companies also as largely everyone is circumventing the law, Flipkart is one example of that,\u201d the trader\u2019s body said in a press statement. Pointing out the flaw in Flipkart\u2019s business model, CAIT said that the online marketplace is actively engaged in the inventory-based model of e-commerce in the guise of operating under a marketplace model. Flipkart tried to circumvent the law by routing the sales via their preferred sellers, who are their affiliates, the trader\u2019s body said. \u201cFlipkart is also actively involved in selling \u2018extended warranty\u2019 to customers directly. Flipkart (either directly or through companies over which they have control over \/ ownership stake in \/ affiliate) is directly \u2018selling a service\u2019 to customers directly in violation of the FDI Policy,\u201d CAIT asserted. The FDI policy provides that an e-commerce entity providing a marketplace will not exercise ownership over the inventory i.e. goods purported to be sold. \u201cIt is a clear case of what they cannot do directly, they are doing it indirectly and this goes against the teeth of any law, including FDI policy and as such, Flipkart should liable,\u201d said CAIT. The traders body also raised questions on Flipkart\u2019s manufacturing products under in-house brands which, according to CAIT, is in direct conflict of interest between Flipkart and the sellers and the manufacturers on its platform. Earlier in the week, the CAIT had filed a petition with the Competition Commission of India (CCI) raising serious objections against the $16 billion Walmart-Flipkart deal on concerns that the deal will annihilate small time traders on offline platform and create an unhealthy competition much to the disadvantage of both offline and online sellers.