CAIT accuses Amazon of violating FDI policy, Amazon denies
The Confederation for All India Traders accused U.S.-based e-commerce business Amazon of violating Foreign Direct Investment policy and the Foreign Exchange Management Act, with Amazon denying this claim.
CAIT wrote to the Union Minister of Commerce Piyush Goyal alleging that Amazon is conducting multi-brand retail activities in India through its investments without government approval, and asked Goyal to ensure the maximum penalty for the business.
“Documents available in the public domain show that Amazon has made an investment of about Rs 35,000 crore in Amazon India, a make-believe e-commerce marketplace platform, but in reality [it is] indirectly carrying multi-brand retail business,” said CAIT’s general secretary Praveen Khandelwal, the Press Trust of India reported.
Khandelwal shared that he has called together business leaders from across India for an online meeting about the matter, urging the Enforcement Directorate to take swift action. The CAIT general secretary also said that traders could stage a protest if their voices are not heard and that CAIT is ready to take its case to the courts if it feels that would be necessary.
“As a responsible investor and a long-term player in India, Amazon complies with FDI laws and seeks regulatory approvals including from the Competition Commission of India,” an Amazon spokesperson responded, the Press Trust of India reported.
“Our investment in Future and all investments in India are in compliance with applicable regulations.”
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