Flipkart-Myntra Scam of 3000 crores in the name of discount! 33 accused of favoring sellers; What is the case?

• Flipkart-Myntra in trouble again?
• Scam worth 3000 crores in the name of discount!
• 33 accused of giving benefits to fan sellers

Flipkart-Myntra Scam : Famous e-commerce companies Flipkart and Myntra are very famous for their services. Delivering their things to the people at home in less time has a special place in the mind of the customers. But an alleged discount scam of Rs 3000 crore has come to light against these e-commerce companies. The retail traders’ association has moved the Delhi High Court.

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Benefit to select vendors

A fresh CCI complaint has alleged that Flipkart is offering huge discounts to benefit select sellers. The Forum for Internet Retailers, Sellers and Traders (FIRST) has filed an antitrust complaint against Flipkart for offering huge discounts. The complaint alleges that Flipkart is using investors’ money to supply goods to 33 select sellers at below-market rates, causing losses to more than 1.4 lakh sellers.

What’s in the complaint?

The complaint alleges abuse of dominant position and anti-competitive practices. An inquiry has been sought through the Director General of CCI. ‘FIRST’ is an initiative of the India SME Forum and is registered with SEBI. The complaint is directed not only at Flipkart, but also at its parent company Walmart and its affiliates, such as Myntra Logistics and eKart Logistics.

What exactly is the charge?

“Flipkart has structured its operations in such a way that it operates on an inventory-based model, but ostensibly presents itself as a marketplace,” the complaint alleged. According to the information, Flipkart offers heavily discounted products to 33 select retailers such as Omnitech Retail, Supercom Net and Truecom Retail. These sellers then sell the same goods on Flipkart at lower prices than other sellers in the market, the letter said.

What is the charge of ‘first’?

First alleges that the funds required to sell the goods below the market price come from the parent company, and also take advantage of tax breaks. The complaint claims that Flipkart has created a “self-replenishment subsidy fund” worth Rs 3,000 crore every year by taking advantage of GST concessions.

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