CAIT writes to PM Modi Alleging Violation of FDI Rules by E-commerce Companies

November 30, 2020

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2 min readNov 30, 2020

Traders body CAIT (Confederation of All India Traders), which has been campaigning against Amazon and Flipkart for unethical business practices, wrote a letter to PM Modi on Sunday seeking a “strong action” against these organizations for violation of FDI policies by them.


CAIT claimed that various government authorities have failed to protect and regulate the policy and law of government. Hence, the absence of strict action has become a hindrance for small businesses and MSMEs to run their business online.

Since last year, CAIT has been alleging that despite continuous claims by e-commerce giants complying with the FDI norms, the online marketplaces have been undertaking “predatory pricing, deep discounting, loss funding and exclusivity of various products, which are not allowed under the FDI policy.”

Although the Ministry of Commerce has taken a few initiatives to obligate them to carry out their business as per the law, the e-commerce giants have been avoiding the law on one pretext or the other.

The traders’ body, while urging for a through and immediate action against the e-commerce giants, also sought for setting up of an empowered regulatory authority to keep an eye on the e-commerce businesses in the country.