Amazon, Flipkart festival sales violate FDI norms: CAIT
Reiterating its demand for ban on festival sales by Amazon and Flipkart, the Confederation of All India Traders (CAIT) on Tuesday said that the two e-commerce majors are flouting the norms for foreign direct investment (FDI) by carrying out festival sales.
 
The traders' body urged the Commerce Minister to look into the violation of the FDI policy by these e-commerce companies and impose a ban on the declared festival sales. It also urged the government to institute an investigation into the business models of these companies.
 
"Holding such sales and offering deep discounts are clear violations of Press Note No.2 of FDI policy 2018. The CAIT has earlier written to Union Commerce Minister Piyush Goyal to ban the declared festival sales by these e-commerce portals," a CAIT statement said.
 
"CAIT Secretary General Praveen Khandelwal strongly opposed the statements of Amazon and Flipkart that appeared in media couple of days back that they empower the sellers on their respective platforms to decide the prices and offer their choice of selection to customers at the prices they deem fit and offer best value of their products to consumers.
 
"The said statement of both the companies are devoid of any logic and just an eye wash to keep right the wrong practices they are conducting on their platform," it said.
 
Khandelwal also said that these companies are indulging in blatant violation of the FDI policy of the Centre. CAIT noted that the key provisions of the FDI policy say that 100 per cent FDI is allowed in the e-commerce marketplace model and under which e-commerce companies can act only act as technical platforms.
 
The policy clearly says that e-commerce entities will not influence the prices directly or indirectly and shall maintain a level playing field, the statement said.
 
"Since these e-commerce companies are not owners of the inventory how can they offer deep discounts on the inventory hold by the sellers registered on their platform. As per policy, it should be the seller offering discounts but in this case the discounts are offered by e-commerce companies which is again a violation of e-commerce policy.
 
"Such festive sales offering deep discounts are nothing but influencing the prices directly or indirectly which is a clear violation of the policy," it said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • User

    COMMENTS

    ASHOK KAMBLI

    3 weeks ago

    Chaterji sir not leasent buyer he favour talk on builder so builder get benifit & haress to buyer we ger experience

    AAR

    4 weeks ago

    Low prices are good for customers. Why make noise?

    Blackstone Group's Rs 2,700 cr deal to buy Coffee Day techpark
    Blackstone Group along with Salapuria Sattva Group has signed a definitive agreement to purchase the Global Village TechPark of debt-laden Coffee Day Enterprises' subsidiary Tanglin Development Ltd at an enterprise value of Rs 2,700 crore.
     
    "The board has approved and the company has executed the definitive agreements with entities belonging to Blackstone Group and the Salarpuria Sattva Group for investment in GV Techparks Private Ltd, a wholly-owned subsidiary of Tanglin Development Ltd ("TDL"). The completion of the transaction is dependent on the transfer of Global Village TechPark asset from TDL to GV Techpark Private Ltd," Coffee Day Enterprises said in a statement.
     
    It said that the transaction will substantially bring down the debt level of the group which was Rs 4,970 crore as on August 17, 2019.
     
    The company said the first tranche of the transaction would be complete on or before October 31, 2019, and the enterprise value of Rs 2,700 crore is subject to transaction closing adjustments.
     
    The shares of Coffee Day Enterprises on the BSE settled at Rs 72.75 on Tuesday, lower by Rs 1.55, or 2.09 per cent, than its previous close.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    PMLA Appellate Tribunal Order Release of 63 moons' Assets Attached by ED
    The Prevention of Money Laundering Act (PMLA) Appellate Tribunal on Tuesday asked to release assets of 63 moons technologies ltd (erstwhile Financial Technologies India Ltd-FTIL) attached by the Enforcement Directorate (ED).
     
    However, the Tribunal has restrained 63 moons from dealing with the released assets till pendency of the trial of the larger issues in the PMLA court. 
     
    After quashing the attachment orders, The PMLA Tribunal has made release of assets subject to filing of an indemnity bond within a week.
     
    In a statement, 63 moons says, "63 moons, based on sound legal advice, is of the opinion that passing of this sort of restraint order and of seeking an indemnity bond, particularly when the orders of attachment have been quashed, is beyond the power of the Tribunal under the PMLA. 63 moons will take appropriate legal recourse against this part of the order."
     
    The latest relief comes after the Bombay High Court last month ruled that the National Spot Exchange Ltd (NSEL) is not a financial institution and hence notifications for attachment of the company's assets, including bank accounts and properties, under the Maharashtra Protection of Interests of Depositors (MPID) in Financial Establishments Act 1999 Act stood quashed.
     
    The court also declined to stay its order as was requested by the economic offences wing (EoW) of the Mumbai Police.
     
    The two-judge bench of Bharati H Dangre and Ranjit More of the Bombay High Court had ruled that the MPID Act is not applicable in terms of NSEL as it is not a financial institution. 
     
    In July 2016, the economic offences wing (EOW) of Mumbai police had attached assets worth Rs7,063 crore belonging to FTIL, owned and funded by Jignesh Shah. In a statement issued that time, the ministry of finance, had said, “So far, 831 properties worth Rs7,063 crore have been attached by EOW, Mumbai police under MPID Act, out of which, attachment of 711 properties worth Rs6,115 crore have been notified.”
     
    According to 63 moons, the Bombay HC noted that despite the forensic audit commissioned by the EOW tracing the entire money trail to the defaulters, the state attached properties of 63 moons, which was not legally sustainable. It says, "...(the) High Court has also noted that after going through the documents, it leaves no doubt in our mind that the transaction was between two persons i.e. buyer and seller through medium of NSEL; and the Court is satisfied that the NSEL has not accepted any deposit and if it has not accepted any deposit, then it would not fall within the definition of 'financial establishment'."
     
    "...(the) High Court has held that NSEL was a commodities exchange where commodities were traded between willing buyers and sellers acting through their brokers. The Court has noted that the state and the investigating agencies have simply assumed and proceeded on the basis that NSEL acted as financial establishment without verifying this jurisdictional fact before attaching properties of 63 moons," the statement issued by the company says.
     
    63 moons Technologies is in the business of developing and selling technology products for facilitating trading on exchanges such as stock and commodity exchanges and claims to have more than 63,000 shareholders and over 800 employees.
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    COMMENTS

    Ramesh Poapt

    3 weeks ago

    MUST READ book on jignesh shah reg so called scam

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