May 19, 2017 03:20 PM IST | Source:

Snapdeal refutes sellers’ claims of unpaid dues, vendors hit back

Even as Snapdeal is in talks with rival Flipkart for a merger, sellers registered with the Gurgaon based online marketplace claim to have outstanding dues with the company.

Durba Ghosh

Moneycontrol News 

In response to sellers’ claims regarding unpaid dues by Gurgaon based Snapdeal, the e-commerce company has squarely denied having any such pending outstanding.

Earlier this week, the sellers had requested government authorities to stay the merger of Snapdeal with Flipkart, until their dues are settled.

The company said that the payments are made to sellers at least 6-10 times per month and “typically sellers receive their payments within 3-5 days of the sale of their goods.”

The All India Online Vendors Association (AIOVA) claims that sellers registered with it have outstanding dues of about Rs 1.2 crore. These claims could not be verified.

A statement by Snapdeal brushed the issue aside, saying any occasional seller disputes are handled through a robust grievance redressal mechanism, consistent with seller policies and contractual agreements.

Snapdeal is currently in talks of merger with larger rival Flipkart.

The company pointed out that only those cases which are under investigation have pending payments.

“Details are awaited from sellers in support of the claims made by them. These are minor amounts, which will get paid on the basis of information provided by sellers and in accordance with the contracts and seller policies,” said Sanjay Agarwal, Senior Vice President, Finance Operations, Snapdeal.

The sellers registered under All India Online Vendors Association (AIOVA), however, strongly refuted Snapdeal’s claims.

The association in a statement said that the 'company is falsely claiming' to make payments within 3-5 days. The association said that it plans to take legal action against Snapdeal and approach India's Commerce Ministry regarding non-payment of dues.

AIOVA in its response to Snapdeal’s statement this week claims that the sellers’ representatives met CEO Kunal Bahl several times to voice their concerns, but they never replied or acknowledged their concerns, “Even when we supported it with valid documents.”

The sellers also claim that helpline was shut down in March without any notice.

Snapdeal in a media statement advised sellers to contact their account managers for any unresolved issues.

The claims that it has started legal proceedings against fraudulent sellers.

"Over the last many months, we have further reinforced internal audit and control processes to detect fraudulent practices by sellers. Legal action has been taken against nearly 35 sellers, including initiation of criminal proceedings where required," Agarwal of Snapdeal said.
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