E-commerce companies came under fire from a rather unlikely quarter on Wednesday, with Footwear Retailers Association filing an affidavit in the Delhi High Court, alleging e-tailers of flouting the FEMA regulations. FDI as far as retailers are concerned continues to be a litigious issue.
The Footwear Retailers Association claims there is violation of FEMA provisions as far as e-commerce firms are concerned in terms of routing investments. They further argue the FDI policy the way it stands is also being flouted - though 100 percent FDI is allowed in B2B operations, these funds are being routed towards B2C business to consumer retail operations and that is the concern they have cited.
The Association has also sought a probe by RBI and Enforcement Directorate. The Delhi High Court, meanwhile, has agreed to hear the plea. The next hearing on October 14.
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