Big news related to Amazon and Flipkart, High Court issues notice
Big news related to Amazon and Flipkart, High Court issues notice
In the matter of alleged violation of the Foreign Direct Investment (FDI) by the High Court, the Central Government, Amazon and Flip Cart have issued a notice and sought the response. By filing petitions, the NGO has demanded a probe by violating the conditions of FDI on these two e-commerce companies.
A Bench of Acting Chief Justice Geeta Mittal and Justice C Hari Shankar issued notice to Center, Amazon and Flipkart and directed the parties to keep till 11 November. The court has issued this notice on the petition of NGO Telecom Watchdog.
On behalf of the NGO, advocate Pranav Sachdeva has filed a petition seeking legal action for alleged violation of the provisions of the Foreign Exchange Management Act (FEMA) and FDI laws against these e-commerce companies.
It has been said in the petition that these companies have created many small companies to avoid the conditions of FDI and these companies are selling heavily demanded items.
This has made it difficult for small businessmen to take part in the growing business of e-commerce. It has also been said in the petition that these companies are controlled by the press note 3 of 2016.
According to him, e-commerce companies will not buy their stocks nor will they affect the prices of the available commodities and services in open markets directly or indirectly.
The NGO says that these e-commerce companies directly buy goods on a big discount from the producers and sell it to the customer at a cheaper price. With this, the profits of small traders are getting affected very badly. It is a direct violation of FDI terms.
