New Delhi: Raising the burning & critical issue of violation of FDI policy by Amazon & Flipkart, the Confederation of All India Traders (CAIT) today in a communication sent to Prime Minister has urged for an immediate action against Amazon & Flipkart for brutal violation of FDI policy of the Government and deliberately causing huge GST & Income Tax revenue loss to Government . The CAIT has said that unfair and unethical business practices of these companies are determined to destroy retail trade of India being conducted by about 7 cr small traders providing employment to about 40 crore people. The CAIT has called upon Prime Minister Shri Modi to take immediate necessary action and ensure that these companies should fall in line to follow FDI policy and the law in both letter and spirit.
In its communication to Prime Minister, the CAIT lamented that Its a fundamental principle of jurisprudence that law is always supreme and everyone without any discrimination has to obey the law and policy of the Government which has been repeatedly reiterated by Shri Piyush Goyal, Hon’ble Minister for Commerce & Industry in context of e-commerce & FDI policy.
However, Inspite of FDI policy in place & repeated firm & strong statement of Hon’ble Shri Piyush Goyal which amply reflects the intent of the Government but both Amazon & Flipkart are bent upon in openly flouting FDI policy without any fear of FDI policy or law-added CAIT
CAIT National President Mr. B.C.Bhartia & Secretary General Mr. Praveen Khandelwal strongly objected to the business model of both the Companies and surprised that said that both Amazon & Flipkart are making huge sales but suffering from losses of thousands of crores of since last many years but not only continuing their business activities on full swing .They further said that as per latest information Amazon has registered cumulative losses of over Rs.7,000 crores across various units in year 2018-19 whereas revenue increased by 54%. On the other hand Flipkart registered loss of Rs.5459 crores whereas combined revenue shot up by 44%. It is a unique case where sales are amazingly growing every year but on the same side losses also increased to a huge extent in case of both Companies.
Both Mr. Bhartia & Mr. Khandelwal alleged that on the face of it there appears to be a sound case for circumventing the money and escaping due liability of GST & Income Tax and since last five years no tax department has ever took any cognisance of such an extraordinary business situation.
Both Mr. Bhartia & Mr. Khandelwal clarified that traders of the Country are not against e commerce because we are of the considered opinion that E Commerce is another vibrant future mode of business but everyone is under mandatory obligation to follow policy and law in both letter & spirit.
Raising pertinent questions to Prime Minister, the CAIT said that whether E Commerce Companies like Amazon & Flipkart will be allowed to violate the policy of the Government ? Whether Brand owing Companies and Banks will be allowed to create a cartel with these E Commerce Companies ? Whether any investigation will be conducted by the Government into their business model or they will be allowed to make Indian e commerce market as a free play ground where they will operate the business to their wish ?
The CAIT has urged the Prime Minister to intervene in this crucial issue and issue appropriate directions to the concerned Authorities so that retail trade in India may conduct its business activities in a fair and ethical business atmosphere.