CAIT asks PM Modi to ensure no dilution in draft e-commerce rules

The CAIT assured the Prime Minister that the business community stands in solidarity with the Government for releasing the said rules which spell out the modalities and parameters through which the laws and the rules will be complied and hopes that the draft rules after examining the suggestions and objections will be notified without any further delay.

The draft rules 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 Piyush Goyal, Union Commerce and Industry Minister, several times at different national and international forums in the past two years, said the CAIT.

CAIT in a communication to PM Modi said that it has been observed that in a clandestine manner a voice of terming the rules as stringent is being created in the media with several unfounded stories stating that the rules will discourage flow of FDI in India.

These are nothing but fear of the global majors that if they are compelled to obey the rules, their long term strategy of controlling e-commerce and retail trade will miserably fail 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", said CAIT.

CAIT further said the unethical and law violating business practices of foreign funded e-commerce companies has forced closure of a large number of shops in the Country. Instead of complimenting the businesses of small traders, these e-commerce companies indulged into all kinds of mal-practices which are strictly prohibited in Press Note 2 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.

CAIT regretted to note that these e-commerce companies are treating India as a banana republic, having weak laws and rules. 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 cannot be accepted under any circumstances. It appears that the e-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 e-commerce entities even during COVID-19 pandemic that has ravaged the retail sector and has severely impacted our lives, livelihoods and the welfare of our families.

CAIT said that the traders of India are not against e-commerce but are of the considered opinion that e-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. The domestic trade in the Country is conducted by more than 8 crore small businesses providing employment to about 40 crore people and generating an annual turnover of about Rs 115 lakh crore. Besides, lakhs of crores of rupees business is also conducted through various modes in the informal sector and there is a need to bring the informal sector into the formal sector thereby achieving the object of bringing GDP in double digit", CAIT said.