Snapdeal sellers asked to clear loans by Axis Bank

By

Maverick Martins

Published
Mar 9, 2017

India’s leading private sector bank has asked sellers on Snapdeal to clear outstanding dues with the bank immediately. The bank said if they fail to do so, it may initiate the process of recalling the loans and suspending overdraft facilities.

“Axis Bank have decided to cancel withdraw the unavailed limit as sanctioned by (the) Bank. Further, for availed limit, we request you to make the payment to close the facility granted to you. Remittance of all Snapdeal & other proceeds to overdraft account will be adjusted to close the availed facility,” the communication from the bank added.

Sellers said they were unable to repay loans because Snapdeal has not transferred the money due to them for products sold on the platform. The All India Online Vendors Association (AIOVA) says the e-commerce company owes them about Rs 300 crore.

Snapdeal denies these claims. A spokesperson for the company sent the following emailed response to Times of India on Wednesday: “There is no delay in payment of seller dues at Snapdeal. In fact, earlier this week, payment cycle for SD+ sellers has been made faster by 40% and sellers have been communicated accordingly. Allegations of delay are being made without any basis to support the same. Sellers, partners are advised to connect with the company directly and not pay heed to baseless rumours. Loans disbursed by lenders to borrowers are governed by the terms of such lending and are to be dealt with accordingly.

AIOVA has also sent a letter to Snapdeal's founders asking them to come for a discussion to resolve the matter. “We have not heard from them yet despite repeated attempts,” the AIOVA spokesperson said.