New Delhi, Oct 30 (KNN) The rift between Confederation of All India Traders (CAIT) and e-commerce giants Amazon and Flipkart over issues like predatory pricing and deep discounting has taken a new form as the later has shot a letter to Prime Minister Narendra Modi seeking his intervention for violation of FDI Policy by the e-commerce companies.

CAIT has also requested an appointment from the PM to further discuss these issues.

In the letter, CAIT urged Modi to turn his attention to the business model of Amazon and Flipkart. The body believes that these companies are violating the Press Note 2, which updated the government’s 2018 FDI policy. It added that this has created an uneven playing field, unfair and unethical competition and destabilized retail trade of India.

CAIT National President BC Bhartia and Secretary General Praveen Khandelwal strongly objected to the business model of both the companies and said that it is a well-accepted fundamental principle of trade that loss acquiring business entities cannot sustain long in the market unless backed by financial institutions or investors to sustain losses.

''Both Amazon & Flipkart are suffering with huge losses of thousands of crores of since last many years but not only continuing their business activities on full swing but also hold few "big sales" every year. 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,'' they added.

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.

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