Moneycontrol Be a Pro
Get App
you are here: HomeNewsBusiness
Last Updated : Oct 20, 2019 06:27 PM IST | Source: PTI

CAIT demands high-level enquiry by govt to probe 'unholy nexus' of e-commerce cos, banks

The traders' body said it will also seek an appointment with the prime minister to apprise him of the "unholy nexus" and seek remedial measures.

Traders' body CAIT on October 20 demanded a high-level enquiry by the Centre to probe the "unholy nexus" of e-commerce firms, companies owning brands and banks for causing price distortion in the country's e-commerce market.

Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CAIT) also urged Prime Minister Narendra Modi to constitute a Group of Ministers (GoM) to look into the alleged distortions, both in the e-commerce and brick & mortar format of retail.

Union Minister Piyush Goyal had earlier this week said that the government was looking into alleged predatory pricing by Walmart-owned Flipkart and Amazon.


In a statement, CAIT claimed that not only e-commerce firms like Amazon and Flipkart, but a large number of companies owning brands, particularly in mobile, FMCG, electronics, electrical appliances, footwear, garments and other sectors, and various banks are also responsible for distortion in prices of different products on online portals.

"It is apparent that these brand owning companies are also exploiting the offline market, being hand in glove with e-commerce companies having separate price policy for both online and offline market, which is a clear violation of the Competition Act," the traders' body said.

It also criticised the banks giving cash back and various types of discounts for purchasing goods from e-commerce portals by making payments through their respective credit/debit cards.

CAIT said the "vicious nexus" of brands, banks and other service providers was creating distortion in the e-commerce market and creating an uneven playing field which runs contrary to both the FDI policy and the Competition Act.

Khandelwal said CAIT representatives will soon meet Commerce Minister Goyal, Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das on this subject and demand justice.

The traders' body said it will also seek an appointment with the prime minister to apprise him of the "unholy nexus" and seek remedial measures.

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Oct 20, 2019 06:15 pm
Follow us on
Available On
Trusted By 1cr Families
Medlife Health Comes Home