New Delhi, July 25 (KNN) Government has constituted a committee to examine issues related to FDI in e-Commerce, said Union Minister of Commerce and Minister.

In a written reply to Lok Sabha, Goyal said “A Committee has been constituted on July 12, 2019 under Additional Secretary, Department for Promotion of Industry and Internal Trade with members from the Department of Commerce, Department of Consumer Affairs, Department of Legal Affairs and Ministry of MSME to examine issues related to FDI in e-Commerce and give its suggestions.”

Appreciating the move, Secretary General of CAIT, Praveen Khandelwal has expressed satisfaction that Government is keen to resolve various issues related to FDI in e commerce which is need of the hour.

He said that companies who have obtained FDI for conducting e commerce business in India have converted marketplace model into inventory based model with side lining the FDI policy and openly violating the rules, the CAIT since a long time is raising strong voice against such practices of these Companies.

The FDI policy allows 100 percent FDI in marketplace model of e commerce and the companies availing FDI are deeply involved in predatory pricing, deep discounting and loss funding backed by their investors in their bid to enhance market valuation of the Company, he added.

In fact such companies are never interested in e commerce business but now it has become a valuation game which is quite unethical and creates uneven level playing field which is to the disadvantage of domestic traders, said Khandelwal.

He further added that Committee constituted by the Government should consult all stakeholders to obtain maximum information about FDI in e commerce.

The CAIT will give its exhaustive memorandum to the Committee and Commerce Minister Piyush Goyal, the Confederation affirmed.