Traders' body CAIT today said the commerce and industry ministry has forwarded its complaint with regard to violation of FDI policies by e-commerce firms to the RBI and Enforcement Directorate (ED) for necessary action.
As per the memorandum, the CAIT has inter-alia alleged that e-commerce companies are violating FDI policy on e-commerce.
It requested the government to issue directions for adherence of FDI policy on e-commerce and to establish a special task force to monitor e-commerce platforms, it added.
"Walmart-Flipkart deal has to face a new attack as in a major development and bowing to pressure from traders lobby, the Ministry of Commerce has at last acted upon the complaint...made against e-commerce companies for indulging into malpractices and predatory pricing," the traders body said in a release.
Emails sent to Flipkart and Amazon India did not elicit any response.
In its complaint made to Commerce and Industry Minister Suresh Prabhu, CAIT had said e-commerce platforms are "grossly and openly" flouting FDI policy which restrains them for influencing the prices.
CAIT's complaint further said despite several representation, the government "chose to remain a mute spectator".
"This time we shall be pursuing the matter with both ED and RBI so that e-commerce companies, including Flipkart and its newly owner Walmart, should not escape from the liability of malpractices, predatory pricing and deep discounting," said CAIT National President B C Bhartia.
CAIT has also filed a petition before the Competition Commission of India (CCI) against the USD 16 billion Walmart-Flipkart deal.
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