In wake of hard pressure tactics of Walmart, Amazon & others to defer implementation of FDI policy in e Commerce, the CAIT compelled to seek immediate intervention of Prime Minister through a letter sent today to him:
At the outset, we on behalf of business community of the Country, extend compliments to the Government for issuing much desired clarifications in FDI Policy in e commerce vide Press Note No.2 issued recently. Such a step will prove to be much beneficial not only to about 7 crore small businesses in both offline and online but in long term will also be benefitted to the consumers of the Country.
It is appreciated that the Government has recognised the illusion created by global e commerce players in the Country and under the garb were indulging into all kinds of malpractices including predatory pricing, deep discounting, loss funding and exclusivity which covered the e commerce market into an uneven level playing field devoid of any fair competition.
However, we have been compelled to seek your kind and immediate intervention in the matter since it has been observed that several global e commerce players in association with vested interest Chambers & organisations are using all kinds of pressure tactics to halt the clarification issued by the Ministry of Commerce so that they may continue with their sinister game of unethical business practices to the much disadvantage of crores of people of the Country.
It is noteworthy to mention that since last many years these e commerce players were circumventing the spirit of the policy by using artificial companies on their portals for influencing the price of the commodity. Millions of families of small businesses have been greatly disrupted due to unethical business practices of such e commerce players and many retailers had to shut their shops and huge job loss happened in the retail sector.
The recent clarification in the policy will enable millions of traders to return back to business and crores of families who have been adversely impacted economically, will again be able to conduct business in a fair environment .
In the larger interest of the Country and the economy, we request your good self to kindly direct the Ministry of Commerce not to budge against any pressure and do not defer or extend the stipulated date of 1st February,2019 for implementing the policy nor bring any change or amendment in the policy.
In furtherance of the intention of the Government, it is more necessary that the policy is strictly implemented in its true letter and spirit and for this purpose, we suggest the following :
a. An Independent Regulatory Authority for E Commerce should be constituted to regulate and monitor the e commerce trade. The said Authority should be duly empowered to take action against any entity which defy the policy.
b. E Commerce Policy which is long awaited should be framed and declared immediately without taking much time.
c. The FDI norms as spelled out in the policy should also be made applicable on domestic e commerce players as well to restrict them for adopting any unethical business practices and remain at par with other e commerce players.
d. The e commerce players should be directed to obtain a Compliance Certificate for every financial year for complying the norms of the policy and those who are not able to obtain said Certificate should not be allowed to raise funds and the operations of their portal should be suspended.
We are sure that it will receive your kind attention and you will be kind enough in taking necessary action