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DIPP to deal with FDI violations & discounts

Update On :17 August 2016

DIPP to deal with FDI violations & discounts

Trade bodies up in arms against etailers, with the declaration of discount war by ecommerce leaders, various traders and seller associations have reached out to DIPP once again to complain about alleged FDI rules violations.

While etailers are busy trending Independence Day sales’ hashtags on social media platforms, offline retailers and online sellers are making a list of rules being broken by ecommerce players.

DIPP says, dealing with FDI violations is RBI and ED’s responsibility.

After receiving several complaints from sellers, retailers’ body and trader’s body, about Flipkart, Paytm, Amazon, and Snapdeal, Department Of Industrial Policy And Promotion(DIPP) had tweeted from its official handle that FDI policy violation is part of penal provisions of FEMA.

The government body asks etailers to stop wasting FDI funds on discounts

DIPP has made it clear that it is not an enforcing authority and hence can’t take action against ecommerce firms. But the body has also issued strong word of advice to etailers.In an event last week, Sanjeev Gupta, Additional Secretary of DIPP said that FDI pumped into Indian ecommerce sector should be used to improve digital infrastructure instead of funding deep-discounts.

News Source From : http://indianonlineseller.com/2016/08/trade-bodies-up-in-arms-against-etailers-dipp-clears-air-on-fdi-violations-discounts/

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