New Delhi. Traders’ organization Confederation of All India Traders (CAIT) and retail mobile vendors’ organization AIMRA said on Tuesday that the Competition Commission of India (CCI) should immediately suspend the operations of e-commerce companies Flipkart and Amazon. The organizations alleged that e-commerce companies are indulging in unrealistic pricing and spending cash to offer huge discounts on products.
CAT and AIMRA said that due to this behavior an unauthorized market or gray market of mobile phones is being created, causing loss to the government exchequer. He alleged that traders in such markets evade taxes. CAT in collaboration with All India Mobile Retailers Association (AIMRA) released a white paper on the impact of e-commerce giants Amazon and Flipkart on India’s retail ecosystem.
AIMRA sought suspension of operations of Chinese mobile phone manufacturers OnePlus, IQOO and Poco for allegedly colluding with e-commerce companies. The white paper alleges that Flipkart and Amazon have violated the Foreign Direct Investment (FDI) policy and other regulatory frameworks.
BJP MP and CAT general secretary Praveen Khandelwal said, “They (Flipkart and Amazon) are deeply involved in unrealistic pricing, heavy discounting, loss financing etc. “Whatever investment they are bringing in is being used to burn cash and cover losses from their operations in India.” When contacted, OnePlus declined to comment, while Flipkart, Amazon, Poco and IQOO did not immediately respond. Kailash Lakhyani, founder and chairman of AIMRA, alleged that some brands and banks are colluding with e-commerce companies to offer huge discounts.