New Delhi : The Enforcement Directorate (ED) on Thursday, November 7, raided the premises of some key sellers working for e-commerce companies like Amazon and Flipkart as part of the foreign investment violation probe. Giving information about this, official sources said that as part of the action, a total of 19 premises of these preferential vendors located in Delhi, Gurugram and Panchkula, Hyderabad and Bengaluru have been searched.
ED has initiated investigation on several complaints against two big e-commerce companies under the provisions of the Foreign Exchange Management Act (FEMA). It has been alleged that these companies are violating India's FDI (foreign direct investment) rules by directly or indirectly influencing the selling price of goods or services and not providing level playing field to all sellers.
There have been earlier reports that the Competition Commission of India (CCI) is also investigating the alleged anti-competitive practices of e-commerce companies. Let us tell you, CCI works to ensure fair trading practices in all sectors in the market. The Confederation of All India Traders (CAIT) and the mobile retail vendors' organization AIAMR had also filed a petition in the CCI some time ago, demanding immediate suspension of the operations of Flipkart and Amazon, as they alleged that these companies were offering huge discounts on the products. Affects the business by giving.
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He said that due to these methods of sale, a market of mobile phones is being created which is causing loss to the government exchequer because the companies involved in such market evade taxes. Commerce and Industry Minister Piyush Goyal had recently expressed the same concern and questioned Amazon's announcement of a one billion dollar investment in India. He had said that the American retailer company is not doing any great service to the Indian economy, but is compensating for the losses it has suffered in the country.
He had said in August that their huge losses in India indicate that they are monopolizing the market by manipulatively keeping prices low, which is not good for the country as it affects crores of small retailers. The minister had said that with online retail growing rapidly in the country, “are we going to create huge social disruption with this massive growth of e-commerce?”
With agency input.
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