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Traders’ Body CAIT Requested Piyush Goyal To Revise The Press Note 2 To Control Claimed E-Commerce Malpractices.

    5 April , 2021         Fdiindia

Traders’ Body CAIT Requested Piyush Goyal To Revise The Press Note 2 To Control Claimed E-Commerce Malpractices.

Traders’ body Consideration of All India Traders which serves 8 crores traders covering 40,000 trader’s association in India, has requested Commerce Minister Piyush Goyal for revision of 2018 Press Note 2 on FDI policy by DPIIT to control claimed malpractices by e-commerce marketplaces in India. Proposing revision in a communication, CAIT seek Goyal to ban direct or indirect equity participation or control on inventory by marketplace organizations to generate a level playing field for all stakeholders, and forbid FDI in inventory-based e-commerce and multi-brand retail in food items. The alliance has also desired a periodic audit of e-commerce organizations for compliance check and also requested for necessary registration for every e-commerce entity with DPIIT. CAIT National President BC Bhartia and Secretary-General Praveen Khandelwal even solicit Goyal to expand the scope of the policy on the organizations in other sectors like travel, air booking, cab services, or other supply of goods and services online. ‘Vide Clause 100 per cent FDI is permitted in manufacturing domain under automatic route and is permitted to sell its products produced in India via e-commerce under the array of selective reading to clause which is a gross contravention of the FDI policy both in letter and spirit. Such back door entry should be plugged in. Bhartia and Khandelwal stated in a Joint statement.

The government in its evaluation of FDI policy in e-commerce had provided Press Note 2 in 2018 for clarity related to the FDI provision. The note had mentioned that the e-commerce marketplace will not practice ownership and control on the inventory and that the company that has equity stake by the e-commerce organizations or its group of organizations or control on its inventory will not be permitted to sell the product on the market place.