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CAIT opposes any extension in implementation of clarifications to FDI policy in e-commerce

Updated: Jan 07, 2019 06:25:56am
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CAIT opposes any extension in implementation of clarifications to FDI policy in e-commerce

New Delhi, Jan 7 (KNN) Confederation of All India Traders (CAIT) has strongly opposed the demand of e-commerce players to extend the date of clarifications to FDI policy in e-commerce.

In a recent release, CAIT said “We strongly opposed any extension of the deadline of 1st February, 2019 for implementation of clarifications to FDI policy in e commerce issued by DIPP few days back which few of major e-commerce companies are seeking.”

In a letter sent to DIPP Secretary Ramesh Abhishek, CAIT demanded an explicit clarification whether private labelling or branding is allowed or not under FDI policy in e-commerce. 

CAIT Secretary General, Praveen Khandelwal while strongly opposing any such extension demanded the government not to succumb to any pressure from any quarter. 

He said that Press Note No 2/2018 explaining clarities is merely a clarification of Press Note No 3/2016 and the policy is already in implementation. It is neither any change or amendment of policy and therefore even stipulating the said date for implementation of the policy is an error on the part of the DIPP.

Since the policy is already implemented from 2016 there is no question of any extension, he pointed.

He further said that modus operandi of these e-commerce companies for seeking extension is to keep delaying fair execution of the policy and under the garb of same, they may continue with their sinister designs of operating all kinds of malpractice including predatory pricing, deep discounting and exclusivity in order to ensure their control & dominance over retail trade and wipe out the competition.

Therefore, CAIT has strongly demanded the government not to fall prey under malicious agenda of such e Commerce companies and no extension should be allowed under any circumstances. 

Khandelwal also invoked attention to clause V of subsequent answers of DIPP issued against different queries on 3.1.2019 which has created a confusion about continuance of private labelling and branding.

There is an urgent need to make it explicit clear whether private labelling or branding is allowed under FDI policy in e Commerce or not, he added.

He said that if it is allowed it will run contrary to the intention of the government to make e-commerce free from evils and malpractice and to provide an equal level playing field with fair competition. Such e-commerce companies will continue their ulterior motives through such loopholes as they are doing since last many years and small retailers will be killed.

He sought clarification from DIPP based on principle of equality, fair competition and even level playing field.     

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