E-sellers' representative body AIOVA has sought the government's intervention to stop the proposed Snapdeal-Flipkart merger, till 500-odd vendors get their dues. The seller body has on multiple occasions made allegations that the online marketplace has not settled dues of hundreds of sellers.
In a letter to Corporate Affairs Ministry and Commerce Ministry, the All India Online Vendors Association (AIOVA) said over 500 sellers complained about "unsettled financial matters with the current management of Snapdeal."
"We therefore request you to hold the winding down/sale/ merger of above mentioned company (Snapdeal)," it added. AIOVA represents more than 2,000 sellers selling on e-commerce platforms like Snapdeal, Flipkart and Amazon.
"We have been receiving formal and informal complaints from sellers across the country with proof of their due and disputed payments in Snapdeal. As there is no safeguarding of such dues, the only option to recover such dues is through long battles in court. Snapdeal is no acknowledging or settling these dues," it added.
The body cited the example of Askmebazaar (Getit Infoservices) -- which wound up operations last year -- and the incident left thousands of sellers duped of their money. AIOVA alleged that it had compiled and submitted a list to the management of Snapdeal in March, but the management did not act on it.
"Our members are already reeling under the losses faced due to Askmebazaar. Now, they feel they will face losses with Snapdeal under the new management," it added.