Complaints of e-commerce players to be forwarded to the ED

28 April, 2018
According to top government official complaints related to alleged violation of FDI norms by e-commerce players have been forwarded to the Enforcement Directorate (ED) for appropriate action. Ramesh Abhishek, Secretary, Department of Industrial Policy and Promotion (DIPP) said that all FDI policies are notified under the Foreign Exchange Management Act (FEMA) and any infringement of the law or allegation is investigated by the ED.
So all the complaints received in this regard or any violation of FEMA, is sent that to ED for appropriate action.
These remarks assume significance as certain industries and the Confederation of Indian Traders (CAIT) have time and again alleged violation of foreign direct investment (FDI) norms for e-commerce by online retail firms.
They have demanded action by the DIPP on their grievances. When asked about reports that Amazon has sought certain clarifications from the department on sharing warehouse staff and other things for its food retail business, the secretary said: “if they have some problem, we can examine it”.
Last year, the government approved Amazon Retail India’s proposal. The company has proposed investments of Rs 3,500 crore for setting up subsidiary company in India with 100 per cent FDI to engage in the business of retail trading of food products manufactured and/or produced in India.

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