CAIT wants a regulatory body to rope in e-com players

Traders’ body, Confederation of All India Traders (CAIT), demanded formation of a Regulatory Authority for India’s online retail market. It has alleged that e-commerce firms are openly flouting norms which were laid down under foreign direct investment (FDI) policy.

A joint statement by CAIT president B C Bhartia and secretary general Praveen Khandelwal talked of how the e-commerce industry even while giving choices to Indian consumers had given rise to many disputes by the consumers. The letter also stated that the need for a regulatory authority and specified rules and regulations before the situation worsens. They believe that the e-commerce companies have already vitiated the market to a great extent. The traders’ body further alleges that e-commerce websites do not follow the Indian laws at all and adopt unfair means to grow their business which is ‘creating an uneven level playing field much to the disadvantage of brick and mortar shops resulting into diversion of their customers to e-commerce market’.

The Department of Industrial Policy and Promotion (DIPP) tweeted in response to a tweet that it is responsible for formulation of FDI policy and violation of FDI policy is a part of FEMA which is administered by Reserve Bank and Enforcement Directorate is the enforcement agency. Khandelwal pointed out that by taking advantage of such provisions and loopholes, the e-commerce players have made e-commerce market a free play ground. And that is why it was imperative that the government set up a regulatory authority.