The Association of IT, Bangalore and the Federation of IT Dealers, Karnataka have called on the State IT Minister, Shri S. R. Patil, and submitted a memorandum to the Minister showing concern on how E-Commerce websites are resorting to unethical trade practices by offering heavy price cuts and thus threatening employment of over one lakh workers.
State IT Minister S. R. Patil heard the grievances of the IT hardware industry and assured that he would look into the matter. Shri Patil, assuring the delegation, said, “I will examine the matter to ensure that the IT growth in Karnataka is not hindered. My ministry will try and find a way out to ensure that the interests of all are protected.”
The President of the Association of IT Bangalore, Shri M. A. Sathya Prasad, while submitting the memorandum, said, “We have been the backbone of the IT growth story in the state and now we are faced with a situation that major E-Commerce sites are indulging in unhealthy trade practices by offering huge price cuts which are creating an unhealthy trend. While we are not against the customers getting best deals, but the problem is that there are gross violations of Indian tax laws by many of these sites.”
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The biggest concern that the IT hardware industry has is that many traditional micro, small and medium enterprises are slowly but surely becoming unviable and several have been forced to close down and many more are in the red. The revenue models of these online business houses need to be thoroughly and quickly investigated, and all necessary steps to ensure that they fall in line with the relevant rules and laws should be taken so that a fair and level-playing field is provided to all.
The Association of IT, Bangalore and FITDAK also propose to highlight the matter to the Chief Minister, Shri Siddharamaiah, who holds the Finance portfolio to apprise him on the matter and seek his intervention. An appeal in this regard will also be made to the Prime Minister, Shri Narendra Modi.
