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CAIT appeals PM Modi to ensure 'no dilution' is made in draft of e-commerce rules

Confederation of All India Traders (CAIT) said the e-commerce companies are treating India as a banana republic having weak laws and rules. CIAT even compared the e-commerce to second East India Company who have defined mandate of emerging as masters of economic slavery.

June 27, 2021 / 03:25 PM IST
Representative image

Representative image

Confederation of All India Traders (CAIT) on June 27 wrote to Prime Minister Narendra Modi, requesting him ensure that no dilution is made in draft of e-commerce rules.

Hitting out at the foreign funded e-commerce firms, the trade body alleged that these firms are all sorts of malpractices -- strictly prohibited in Press Note 2 of FDI policy.

"Instead of complimenting the businesses of small traders, the e-commerce companies indulged into all kinds of mal-practices which are strictly prohibited in Press Note 2 of the FDI policy with a calculated but a hidden agenda to control, dominate and monopolise not only the e-commerce but even the retail trade in India by highly disturbing market algorithm and displacing small traders of the country with their livelihood," the letter added.

Read: Kirana shops in states under COVID-induced lockdowns face a supply crunch

The trade body said the e-commerce companies are treating India as a banana republic having weak laws and rules. CIAT even compared the e-commerce to second East India Company who have defined mandate of emerging as masters of economic slavery. The body said that this can not be accepted under any circumstances.

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Instead of conducting business activities, the e-commerce landscape of the country has been converted into an open ground for valuation games, the trade body noted. It also said that the small kirana retailers are suffering due to the anti-competitive and anti-kirana policies of these e-commerce entities, that has ravaged the retail sector and impacted livelihood of people.

The trade body highlighted the need to bring informal sector in to formal sector, thereby achieving the objective of bringing GDP in double digit. The CIAT mentioned how expected pressure tactics of foreign funded E-commerce companies against the draft of 'E-Commerce Rules under Consumer Protection Act' may hamper the prospect of small traders to sustain in the market.

"...the domestic trade in the country is conducted by more than 8 crore small businesses providing employment to about 40 crore people and generating an annual turnover of about Rs 115 lakh crore," CIAT said in its letter.

However, CAIT said that they are not against the e-commerce but are of the considered opinion that e-commerce is the most promising business avenue of the future. Traders of India should also adapt e-commerce as a stream of their business beside conducting business activities in their physical shops, it said.

"However, we stand strongly against unethical business practices and violation of the law. The trading community is committed to ensure that sovereignity of businesses in India should not be compromised and no power or entity should pose a challenge based on unethical business practices," the CAIT noted.

The trade body in its letter to PM Modi cited media reports which in a clandestine manner are calling the new rules as stringent and will discourage flow of FDI in India. CAIT appealed PM Modi to look into he matter, so that there is no dilution on the draft e-commerce rules.
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