E-commerce giants are violating Amazon Mazon Flipkart FDI rules; Government to ED and RBI | The government has directed the ED and RBI to investigate foreign investment

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  • E-commerce giants are violating Amazon Mazon Flipkart FDI rules; Govt. To ED and RBI

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Mumbai15 hours ago

The government has said that in case of FDI, the Reserve Bank and the ED should take necessary action against these companies. Explain that the Confederation of All India Traders (CAT) has been demanding action against these companies for a long time.

  • This investment will happen if the rules of foreign investment are violated.
  • The cat has repeatedly complained to the ministry about this decision.

The Enforcement Directorate (ED) and the Reserve Bank of India (RBI) are the two largest foreign-invested e-commerce companies in the country, along with Flipkart and Amazon Mazon. The government has ordered them to investigate. The Confederation of All India Traders (CAT) has lodged a number of complaints regarding violations of FDI policy and FEMA rules. The government has since taken this step.

Concerns among e-commerce companies grew

The government’s order has raised concerns among large e-commerce companies. The national president of CAT, B.C. Bharti and General Secretary Praveen Khandelwal said that several complaints were sent to Commerce Minister Piyush Goyal on behalf of CAT. The Department of Industry and Internal Trade Promotion (DPIIT) has since written to the Reserve Bank and the ED asking them to take action.

Question on the agreement with Birla Group

Bhartiya said the agreement between Flipkart and Aditya Birla Group directly violated FDI rules. Let us know that e-commerce companies are constantly offering discounts despite the constant losses over the last several years. Last year, Amazon lost more than Rs 8,000 crore. The Indian Cellular Association, an association of cellular phone companies in India, has also lodged a complaint earlier. It said e-commerce companies were violating FDI rules by offering discounts on mobile phones, directly or indirectly.

Companies are constantly making deals

These e-commerce companies are constantly investing in India. They are also making deals with Indian companies. Their deals and investments are constantly being questioned. Recently, Amazon also questioned the agreement between Future Group and Reliance and the matter is in court. These e-commerce companies in India are now competing with the country’s giant Reliance Industries. Reliance has recently made a good start in e-commerce.