CAIT demands action against e-comm sites "flouting FDI policy"

New Delhi: Traders body CAIT on Monday alleged that e-commerce portals are "openly flouting FDI policy", and said it may move the court if no action is taken by the government against them.

In a statement, CAIT said it expresses "deep anguish and resentment for the lethargic attitude of the government for not taking any action against e-commerce portals for openly flouting FDI policy of the government in spite of making written complaints."

The Confederation of All India Traders (CAIT) also sent a communication to Department of Industrial Promotion and Planning (DIPP) Secretary Ramesh Abhishek saying "if no action is taken by the government, the trade body may opt for approaching court of law for obtaining justice."

The CAIT also said on September 23 it had sent a communication to Suresh Prabhu, Minister for Commerce regarding gross violation of FDI policy by e-commerce portals and the said communication was referred to Secretary, DIPP for appropriate action same day.

CAIT National President B C Bhartia and Secretary General Praveen Khandelwal said, "So far no action has been taken against such e-commerce portals as a result of which some of them are again going to violate the FDI policy which is evident from the fact that similar big advertisements are visible for different kind of festival sales".

On the occasion of Diwali for the purpose of attracting public in general which is utter violation of the FDI policy as these e-commerce portals are certainly not allowed to conduct business to consumer activities rather they are restricted to conduct only Business-to-Business activities.

However, the body has not given any detail of a particular e-commerce site.

The CAIT demanded immediate action against policy defaulter e-commerce companies and impose ban on working of their portal and conduct an impartial inquiry into the issues raised by the body, it said.