Govt. Will Punish Amazon, Flipkart Over Festive Sale Discounts & FDI Violation (If Rules Were Broken)

Govt. Will Punish Amazon, Flipkart Over Festive Sale Discounts & FDI Violation
Govt. Will Punish Amazon, Flipkart Over Festive Sale Discounts & FDI Violation

Ecommerce platforms have been warned of severe actions against them if found violating any policies of Indian e-commerce by Piyush Goyal, the Minister of Commerce. 

The prolonged festive season saw huge sales from e-commerce websites, such as Flipkart’s Big Billion Days, and Amazon’s Great Indian Festival. The e-commerce giants are now under scrutiny for probable violation of the FDI norms in India.

The Minister also made clear that the Modi led Government stands firmly with the MSMEs and small retailers throughout the country. 

On what base will Flipkart, Amazon and other such e-commerce platforms be punished? Find out right here!

Piyush Goyal Promises Strict Action Against Flipkart, Amazon For FDI Violation

A battle has been brewing among Flipkart, Amazon and the sellers’ bodies, such as Confederation of All India Traders (CAIT) and All India Mobile Retail Association (AIMRA). 

Their main concern – the violation of FDI norms and Press Note 2. 

Goyal said, “The central government has made clear cut guidelines in e-commerce. We have made it clear that if anybody tries to use the route of multi-brand retail, then strict action will be taken.”

He also clarified that e-commerce companies are only a platform for selling and buying products, and that they have no right whatsoever to offer deep discounts on products. By doing this, they are consciously harming small retailers by offering commodities at extremely lesser rates than what is available in the market. 

There have been continuous violations by Amazon and Flipkart, and complaints from sellers and traders bodies such as CAIT as well. DPIIT, on the minister’s request, started a probe as well. 

And now, he has assured that strict action will be taken against the companies who violated the multi-brand retail and Press Note 2. 

BJP Government Stands With MSMEs and Small Retailers

He also said that the BJP’s Government is firmly on the small retailers’ side and with the MSMEs. If any law has been violated in any way, strictest action will be taken against the e-commerce platforms. 

He said, “If law has been violated in any manner, letter or spirit, strictest action will be taken. Bharatiya Janata Party, the Narendra Modi government is very clear that we stand with the small retailers across the country.”

The commerce ministry had sent a questionnaire two days ago, which asked for information, and another supplementary questionnaire will follow. As soon as all the details are revealed, appropriate action will be taken. 

We’ll keep you updated as we get more information!

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