Traders' body files complaint against Flipkart, Amazon, others for violating FDI norms

Traders body Confederation of All India Traders​ (CAIT) has filed a complaint with Department of Industrial Policy and Promotion (DIPP) alleging that major e-tailers Amazon, Flipkart and Snapdeal are blatantly violating Foreign Direct Investment (FDI) norms.

The CAIT has filed a complaint with the "DIPP against Amazon, Flipkart and Snapdeal for blatant violation of FDI Policy in e-commerce of the government", it said in a statement. When contacted, Snapdeal declined to comment on the matter. Amazon and Flipkart did not respond to e-mail queries. CAIT said that in the last three days, these e-companies had given big advertisements in the media announcing sales on their platform, which is a violation of FDI guidelines on e-commerce.

These companies are allowed to do B2B business but they are doing B2C for which they are not authorised, it said. CAIT has sought an appointment with Commerce and Industry Minister Nirmala Sithraman. It asked the ministry to "take immediate action against these companies which are habitual in contravening the policy".

In March, government allowed 100% FDI through automatic route in the marketplace format of e-commerce retailing. As per the guidelines issued by the DIPP on FDI in e-commerce, foreign direct investment (FDI) has not been permitted in inventory-based model of e-commerce.