Bengaluru, NFAPost: Sharpening its moves against ecommerce companies, traders association CAIT has lodged complaints that baks are adopting biased practice in providing discounts for purchases made through ecommerce platforms. Giving credence to CAIT claims, reports suggest that the complaints are being examined by CCI.

In a written reply to the Rajya Sabha, Minister of State for Commer and Industry Som Parkash said that the government has also received representations from the Confederation of All India Traders (CAIT) against ecommerce companies. He added that those representations were forwarded to the Enforcement Directorate, which has taken up the matter for investigation.

“Complaints received from CAIT, alleging biased practice adopted by banks in providing cash backs and discounts for purchases made through e-commerce websites, such as Amazon and Flipkart, are being examined by Competition Commission of India (CCI) as well,” said Som Prakash.

The minister answered in negative while answering a question on whether ED or RBI has initiated a probe into the alleged violation of Foreign Direct Investment policy and FEMA in the deal between Flipkart and Aditya Birla Fashion and Retail

In a separate reply, Som Prakash said a report on Review of Notorious Markets for Counterfeiting and Piracy (the Notorious Markets List) was released by US Trade Representative on January 14 this year, which aims towards addressing concerns of American companies and consumers.

“The Government of India, is under no obligation to take action on such reports and maintains that India has a strong legal and judicial system, to counter such threats of counterfeiting and piracy,” said Som Prakash.

The Minister said several initiatives have been taken up for strengthening enforcement against counterfeiting and for creating strong legal deterrence.

“To counter online piracy, CIPAM (Cell for Intellectual Property Promotion and Management ) collaborated with National Internet Exchange of India (NIXI) and Maharashtra Cyber and Digital Crime Unit, to suspend over 380 infringing websites on the basis of incomplete KYC,” Som Prakash said.

Talking to NFAPost, CAIT National Secretary General Praveen Khandelwal said the continued malpractices of Amazon and Flipkart by indulging in several unfair trade practices to distort and vitiate India’s ecommerce space has brought unprecedented ire and disgust from 8 crore Indian traders.

“Amazon and Flipkart have left no stone unturned in blatantly violating and openly circumventing the FDI policy of the country to completely destroy the ecosystem of Indian ecommerce space. By adopting such predatory tactics like deep discounting, loss funding, inventory control, preferential seller treatment and selling their own brands through their alpha sellers, Amazon and Flipkart have made their intentions clear,” said Praveen Khandelwal.

Praveen Khandelwal also pointed out that is no place for ethics and there is absolutely no respect for the law of the land when it comes to attaining their selfish ulterior motives of controlling and dominating not only ecommerce but retail trade as well.

The association Secretary General highlighted the fact that traders of the country do not fear any healthy competition and they had enough with this long drawn ordeal against these multinational Ecommerce companies who have illegally entered India and unceremoniously through their strong financial muscle shaken the foundation of Indian retail.

“The limit of toleration has been reached and now it is very difficult to control the anger of Indian traders who may take a strong step in the near future to throw out these companies from India if they do not mend their ways and adopt ethical business practices. The entire trading community of the Country is now firmly affirmed that we will not allow any ecommerce entity to continue with their malpractices. Their time is over now,” said CAIT General Secretary.

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