CAIT Alleges Amazon, Flipkart, Snapdeal Are Violating FDI Norms

Traders body CAIT has filed a complaint with DIPP alleging that major e-tailers Amazon, Flipkart and Snapdeal are blatantly violating FDI norms.

The Confederation of All India Traders (CAIT) has filed a complaint with the “DIPP against Amazon, Flipkart and Snapdeal for blatant violation of FDI Policy in e-commerce of the government”, CAIT said in a statement.

When contacted, Snapdeal declined to comment on the matter. Amazon and Flipkart did not respond to e-mail queries.

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 e-commerce.

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 Sithraman.

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 e-commerce retailing.

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