New e-comm policy prohibits companies from offering price-distorting discounts. It also proposes a regulatory set-up to keep a check on circumvention of e-commerce rules
The Swadeshi Jagran Manch (SJM) has called upon the Centre to immediately put a halt to illegal activities of e-commerce companies, such as deep discounts, foreign currency transactions, etc. Emphasising the need for a strong and robust e-commerce policy, the SJM, an affiliate of the RSS, said e-commerce companies are following a "cash burning" model though the law of the land neither permits foreign investment in e-commerce nor deep discounts.
"India should have a robust e-commerce policy to protect the interests of crores of people engaged in retail trade and small and medium industries, and lakhs of youth aspiring to grow in the e-commerce business," the SJM said on Sunday, at its national convention held in Madurai.
India has been witnessing a significant growth in e-commerce, and many small companies have mushroomed, while a handful of giants — like Flipkart, Amazon, Snapdeal, Uber, Ola, Alibaba — are striving to take the lead.
The new e-commerce policy released last month prohibits these companies from offering price distorting discounts. It also proposes a regulatory set-up to keep a check on circumvention of e-commerce rules, the SJM recalled. Furthermore, e-commerce companies are also barred from selling products in companies in which they have a stake.
SJM national co-convenor Ashwani Mahajan argued that the government should implement the policy in letter and spirit and should not provide any relaxation to e-commerce companies. "These e-commerce giants must be dealt with according to the law. Small traders are happy with the current law, and they believe in the government's vision for this sector. Offering concessions to the offenders would shake this confidence," Mahajan added.
The SJM cited that China-based sellers are selling Chinese products illegally on e-commerce sites, and said it has identified 200,000 such orders being fulfilled on a daily basis via this channel in India. These companies are delivering goods via couriers and postal gift shipments, bypassing and evading a range of laws regarding payment gateways, custom duties and GST. This, the SJM said, is disrupting the market for micro, small and medium enterprises (MSMEs). It urged the government to prevent the entry of Chinese products illegally in the country.
LAW OF LAND
New e-comm policy prohibits companies from offering price-distorting discounts. It also proposes a regulatory set-up to keep a check on circumvention of e-commerce rules.
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