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RAJASTHAN HIGH COURT ISSUE NOTICES TO AMAZON & FLIPKART

RAJASTHAN HIGH COURT ISSUE NOTICES TO AMAZON & FLIPKART FOR VIOLATING FDI NORMS

|| TAC News Bureau

On a writ petition filed by the Confederation of All India Traders (CAIT), the Jodhpur bench of Rajasthan High Court today issued notices to Amazon and Flipkart for violation of FDI policy of the Government. The Court has also issued notice to Union of India. The next date of hearing is 15th October by which all the parties have to submit reply of the notice. Justice Dinesh Mehtha heard the matter. The CAIT was represented by its counsels Mr. Rajvendra Saraswat & Mr Abir Roy.

 

The CAIT in its writ petition highlighted the continuous and repeated violations of the FDI policy by Amazon and Flipkart since years and  repeated FDI violations by them since they are engaging in deep discounting, predatory pricing, loss funding and controlling the inventory thereby converting their market place as inventory based model which is a clear violation of FDI policy. The CAIT also pleaded that these e commerce companies are offering deep discounts which in a way is influencing the prices which is again prohibited under FDI policy. The CAIT also raised the issue that since these e commerce companies are not the owners of inventory how can they offer discounts on the goods owned by other persons. The CAIT further said that these e commerce companies are circumventing the policy very openly and despite making complaints to Authorities no action has been taken against them so far. In violation of the policy these e commerce companies are creating an uneven level playing field. Whatever prescribed under the FDI policy, these e commerce companies are conducting their business activities just reversing the policy.

 

The High Court after hearing was pleased to issue notice, which in effect would mean they have to satisfy the Hon’ble Court that their operation are in consonnance with law.

 

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