The Commerce and Industry ministry is not in favour of extending the deadline of February 1 for implementing the revised guidelines for e-commerce companies having foreign direct investment, sources said.

Both Amazon and Walmart-owned Flipkart had sought extension of the February 1 deadline for complying with the revised norms, stating that they needed more time to understand the details of the framework.

While Amazon asked for time until June 1 this year, Flipkart asked for six months.

On December 26, 2018, the government tightened norms for e-commerce firms and barred online retailers like Flipkart and Amazon from selling products of the companies in which they have stakes.

The government also prohibited e-commerce companies from entering into an agreement for exclusive sale of products.

As per the revised guidelines, a vendor cannot procure more than 25% of products from group companies of the same marketplace where they intend to sell them.

Internal discussions

“The ministry has received representations from Amazon and Flipkart for more time. Internal discussions are on. But the ministry is not in favour of extending the deadline,” sources in the know of the matter said.

Domestic traders body Confederation of All Indian Traders (CAIT) had also urged the commerce ministry not to extend the deadline for implementation of the changes.