CAIT Accuses Amazon India Of Violating FDI Policy, Ecommerce Giant Denies
Traders’ body CAIT has accused ecommerce major Amazon of violating Foreign Direct Investment (FDI) policy and Foreign Exchange Management Act (FEMA) norms, a charge which the multinational company denied.
The traders’ body in a letter to Commerce Minister Piyush Goyal alleged that the online retailer has not sought government’s approval for conducting multi-brand retail activities in India and demanded action and imposition of a maximum penalty against the company.
“Documents available in the public domain show that Amazon has made an investment of about INR 35,000 Cr in Amazon India, a make-believe ecommerce marketplace platform, but in reality (it is) indirectly carrying multi-brand retail business,” Confederation of All India Traders (CAIT) secretary-general Praveen Khandelwal said.
Denying the allegations, an Amazon spokesperson told PTI, “As a responsible investor and a long-term player in India, Amazon complies with FDI laws and seeks regulatory approvals including from the Competition Commission of India (CCI). Our investment in Future and all investments in India are in compliance with applicable regulations.”
CAIT alleged that Amazon has investment “of about INR 4,200 Cr in More Retail Limited (a multi-brand retail company); on the face of it looks like it is controlled by an Alternative Investment Fund (AIF) of Samara Capital, and has an investment of about INR 1,430 Cr in Future Coupons Private Limited, a controlling investment in Future Retail Limited (a multi-brand retail company).”