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CAIT now asks PM to probe violation of FDI policy by e-comm cos, Retail News, ET Retail

CAIT now asks PM to probe violation of FDI policy by e-comm cos New Delhi: Confederation of All India Traders (CAIT) has written a letter Prime Minister Narendra Modi, drawing his attention to the business model of Flipkart and Amazon, alleging the e-tailers are blatantly violating the FDI policy, creating an uneven level playing field for the retailers in India.

“Both Amazon and Flipkart are open and blatantly violating the FDI policy of the government right under the nose of the government but inspite of making complaints no concrete action has been taken so far which has leveraged these companies to continue their business activities by indulging into predatory pricing, deep discounts, loss funding, preferential treatment between sellers, controlling indirectly the inventory and influencing the prices,” said Praveen Khandelwal, National Secretary General of CAIT.

Taking potshot over the recently concluded festive sales by both the e-commerce companies, Khandelwal said, “It is most surprising that both Amazon and Flipkart are suffering from huge losses of thousands of crores since last many years but (they) are not only continuing their business activities in full swing but also held few big sales every year.” CAIT also spoke about the huge losses both e-commerce giants are incurring in the process.

The letter also took aim at various cashback schemes provided by banks exclusively on these e-commerce platforms.

The trade body on Monday urged FM Nirmala Sitharaman to probe the business model of Amazon and Flipkart, alleging that deep discounts on products were causing loss of GST revenue to the Centre and state governments.

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