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Is Government Protecting e-Commerce Portals at the cost of Channel Partners?

As life is fast becoming more than miserable for the traditional channel community, there are many channel partners who are asking this question. Is the Modi Government protecting a few e-Commerce sites at the cost of completely dislodging the traditional channel community of India?

The answer seems to be a big SWARN-SINGH-MEDIAYES today, as there is nothing that the government is doing in order to protect any price points in the name of “customer benefit” and as a result, e-commerce sites such as Flipkart, Snapdeal or Amazon can afford to sell products at very special discounted price points.

There are many channel associations which have gone to knock at the doors of the government, but no action has been taken so far. Recently, New Delhi based ADCTA, a channel partner focused association has moved to the Competition Commission of India.

“As you must aware of that Govt. bodies are not listening on unethical business practice (huge discounting) of few E-tailers to attract consumers. We have written to many Govt. agencies including Competition Commission, CBI, SEBI, Our commerce Minister and even email to PMO, but nobody is willing to raise our issue to concerned authorities,”  said, Swarn Singh, Secretary, ADCTA

In a letter addressed to Smita Jhingran, IRS, Secretary, Competition Commission of India, ADCTA has mentioned that that few companies namely Flipkart, Snap deal and Amazon are engaged in selling the goods through internet. In most of the cases it is verified that these companies are selling the goods less than their purchase price.  Due to their unfair trade practice these companies managed to capture the maximum market share.MahinderAggarwal-Photo

The letter further states that that this kind of unfair trade practice is common in India and such companies have sole motive, to increase the creditors amount through buying the goods on credit at higher price and selling the same good on cash at lower than purchase price.  At last these companies run away with the money of creditors.

“That in order to protect to the distributors / dealers / revenue of Government of India / consumers, we ADCTA request you to take appropriate steps. In case such companies managed to registered them self in Stock exchange for issuing the IPO, then such companies will achieve their ulterior motive to cheat innocent investors. Therefore in the large interest of Public of India and Revenue of Government of India, you are requested to kindly not to allow to Flipkart, Snap deal and Amazon to register them in stock exchange till CBI and other agencies finish their inquiry/investigate and reach to final conclusion,” said, Mahinder Aggarwal, President, ADCTA.

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