Amazon, Flipkart accused of violating FDI policy – Indian government asks RBI, ED to take action

New Delhi, In an important development related to the war between the e-commerce giants and the traders of India, the Union government led the Enforcement Directorate and the Reserve Bank of India take the necessary measures against Amazon and Flipkart owned by Walmart.

The Center is aware of various complaints filed by the Confederation of All Traders of India (CAIT) for flagrant violation of FDI policy and Foreign Exchange Management Act, 1999 (FEMA) by these companies.

The National President of CAIT BC Bhartia and General Secretary Praveen Khandelwal informed that on several complaints lodged by CAIT to the Union Trade In the recent past, Minister Piyush Goyal v Flipkart, owned by Amazon & Walmart, the Ministry of Industries Promotion and Internal Trade (DPIIT) of the Ministry of Commerce, in his letter released in December, requested both to the Enforcement Branch and the Reserve Bank of India to take the necessary action against Amazon and Flipkart.


Bhartia and Khandelwal said that in its communication to ED and RBI, DPIIT forwarded four complaints from CAIT, including a violation of the IDE policy in the agreement between Flipkart and Aditya Birla Group, a violation of the policy of FDI related to FDI in manufacturing which is used for Multi Brand Retail by various e-commerce companies, violation of FEMA and its rules by Amazon and gross violation of FEMA and FDI policy by Amazon and Flipkart and exploitation of loopholes on their part.

CAIT said that traders across the country will observe the year 2021 as “Bhartiya Vyapaar Samman Varsh” under the umbrella of CAIT and every effort will be made to clean up India’s e-commerce landscape and an era. of manipulation, bad practice and exploitation will come to an end and CAIT will encourage and encourage merchants across the country to embrace digital commerce and digital payments as new instruments to expand the business network in India.

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