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June 28, 2021

E-commerce business in India -Mandatory compliance of Rules

by CA Shivam Jaiswal in Compliance Law

E-commerce business in India -Mandatory compliance of Rules

Copy of Letter to PM from Confederation of All India Traders

Confederation of All India Traders

“Vyapur Bhawan”
925/1, Naiwala, karol Bagh,New Delhi-110005.
Phone: +91-11-45099884, Telefax:+91-11-45032665
Email: teamcait@gmail.com Website: http://www.cait.in

Ref No.: 3280/1/50

Shri Narendra Modi
Hon’ble Prime minister
Government of India
New Delhi

Respected Shri Pradhan Mantri Ji,

Sub: E-commerce business in India -Mandatory compliance of Rules

On behalf of trading community of the Country, we express our deep gratitude and thanks to your leadership which has emerged as guiding spirit for small businesses of India with the latest step of releasing draft of “E commerce rules under Consumer Protection Act”, a much awaited step to clean and purify highly vitiated e-commerce trade in the Country. The business community stands in solidarity with the Government for releasing the said roles which are spelling out the modalities and parameters through which the laws and the rules will he complied and hoped that the draft rules after examining the suggestions and objections will be notified without any further delay. The draft roles amply reflect the intention of the Government that small or big everyone has to obey the law both in letter and spirit as strongly stated by Shri Piyush Goyal, Hon’ble Union Commerce and Industry Minister several times at different national & international forums in past two years.

We crave leave to mention that the domestic trade in the Country is conducted by more than 8 crore small businesses providing employment to about go crore people and generating an annual turnover of about Rs.115 lakh core. Beside, lakhs of mores of rupees business is also conducted through various mode in informal sector and there is a need to bring informal sector into formal sector thereby achieving the object of bringing GDP in double digit. However, it is highly regretted that unethical and law violating business practices of foreign funded c-commerce companies has forced closure of large number of shops in the Country. Instead of complimenting the businesses of small traders, these n-commerce companies indulged into all kinds of mat-practices which are strictly prohibited in Press Note a of the FDI policy with a calculated but a hidden agenda to control, dominate and monopolise not only the e-commerce but even the retail trade of India by highly disturbing market algorithm and displacing small traders of the Country with their livelihood.

It is regretted to note that these &commerce companies are treating India as a banana republic having weak laws and rulus. It appears that their objective is to become the second edition of East India Company with a defined mandate of emerging as masters of economic slavery which can not be accepted under any circumstances It appears that the &commerce Landscape of the Country has been converted into an open ground for valuation games instead of conducting business activities, which can never be the objective and intention of the Government while allowing foreign MNCs to do e-commerce business in India. The small Kirana retailers are greatly suffering due to anti-competitive and anti-Kirana policies of these foreign &commerce entities even during COVID-19 pandemic that has ravaged the retail sector and has severely impacted fa-LOW our lives, livelihoods and the welfare of our families.

We would like to state that the traders of India are not against c-commerce but arc of the considered opinion that c-commerce is the most promising business avenue of the future and traders of India should also adopt e-commerce as a stream of their business beside conducting business activities in their physical shops. However, we stand strongly against unethical business practices and violation of the law. The trading community is committed to ensure that sovereignty of businesses in India should not be compromised and no power or entity should pose a challenge based on unethical business practices. It has been observed that in a clandestine manner a voice of terming the roles as stringent is being created in the media with several unfounded stories stating that the rules will discourage now of FDI in India. These are nothing but fear of the global majors that if they are compelled to obey the odes, their long term strategy of controlling e-commerce and retail trade will miserably fall and they will have to bring diagonal changes in their business format which will be disadvantageous for them but certainly prompt small traders to adopt and accept e-commerce as a potential mode of business. Therefore, in the larger interest of the Country and your clarion call for” Atmnirbhar Bharat”, we urge your good self to ensure that no dilution is made in the draft e-commerce rules.

Thank You. With highest regards
Yours truly

Praveen Khandelwal
National Secretary General
Confederation of All India Traders

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