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Traders' body files plaint against Flipkart, Amazon, Snapdeal

11 August 2016

The Confederation of All India Traders (CAIT) has filed a complaint with the Department of Industrial Policy and Promotion (DIPP) alleging that major e-retailers Amazon, Flipkart and Snapdeal are blatantly violating foreign direct investment norms.

A CAIT statement said it has filed a complaint with the "DIPP against Amazon, Flipkart and Snapdeal for blatant violation of FDI Policy in ecommerce of the government."

When contacted, Snapdeal declined to comment on the matter. Amazon and Flipkart did not respond to email queries from PTI.

CAIT said that during past three days these companies have given big advertisements in media announcing sale on their platform which is a violation of FDI guidelines on ecommerce.

These companies are allowed to do B2B business but they are doing B2C for which they are not authorised, it said.

CAIT has sought an appointment with Commerce and Industry Minister Nirmala Sitharaman.

It asked the ministry to "take immediate action against these companies which are habitual in contravening the policy".

In March, government allowed 100 per cent FDI through automatic route in the marketplace format of ecommerce retailing.

As per the guidelines issued by the DIPP on FDI in ecommerce, foreign direct investment (FDI) has not been permitted in inventory-based model of ecommerce.

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