![CAIT requests DPIIT to penalise Amazon, Flipkart for alleged violations CAIT requests DPIIT to penalise Amazon, Flipkart for alleged violations](https://varindia.com/storage/news/uploads/2018/02/5fbb81cf6981f.jpg)
The Confederation of All India Traders (CAIT) has written to the Department for Promotion of Industry and Internal Trade (DPIIT) to take action against Amazon and Flipkart for alleged violation of FDI and FEMA norms.
The traders' body in a letter to the DPIIT Secretary, Guruprasad Mohapatra, said, "Our association has been requesting your good office to take appropriate steps and investigate, punish and penalize the multinational companies like Amazon and Flipkart for the blatant violation and/or by exploitation of the loopholes of the FDI policy and Foreign Exchange Management Act."
It said the traders' body has been examining various public statements and documents pertaining to the investments made by both Amazon and Walmart and it has come to light that both these companies have been conducting their activities in blatant violation of Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (FEMA Rules).
It said that the latest revelation by Amazon during the arbitration proceedings at an arbitration court in Singapore clearly shows its control over Future Retail.
It alleged, "Amazon has equivocally claimed that it has absolute control over FRL through the shareholder agreement between Amazon and Future Coupons Private Limited. While FCL has only 9.2 per cent equity participation in FRL, but by the way of shareholder agreement between Amazon and FCL, it has full control over FRL."
CAIT also told DPIIT that Amazon indirectly invested around Rs 4,200 crore and took over control of More Retail Limited.
It also made allegations against Flipkart and said that it has on numerous occasions, brought to the notice of the authorities about the operation of inventory-based model of e-commerce that is prohibited to foreign companies, by Flipkart.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.