Rajasthan High Court issues notices to e-tailers

Jodhpur, Oct 3 (KNN) The Rajasthan High Court has issued notices to Flipkart India and its marketplace entity Flipkart Internet, and Amazon Seller Services over the petition filed by Traders’ body Confederation of All India Traders (CAIT). 

CAIT on Tuesday had moved to Rajasthan High Court seeking a stay on festive sales by e-tailers Amazon and Flipkart for alleged violation of foreign direct investment (FDI) norms.

Justice Dinesh Mehtha heard the matter. The CAIT was represented by its counsels Rajvendra Saraswat and Abir Roy.

In its writ petition, the CAIT has said that the continuous and repeated violations of the FDI policy by Amazon and Flipkart since years as 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 court will further hear the case on October 15th by which all the parties have to submit reply of the notice. 

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