RSS affiliate Swadeshi Jagran Manch (SJM) has called on the government to immediately withdraw the permissions granted to e-commerce giants Amazon and Flipkart-Walmart to operate in India because these companies are “grossly breaking the rules.”
In a resolution recently passed at its national conclave, the company also said that a CBI investigation should be ordered into the operations of Amazon, Flipkart-Walmart and other multinational e-commerce companies, while alleging that these companies are doing business in India “blatantly”. violates the regulations on FDI (foreign direct investment).
“Foreign direct investment in multi-brand retail is regulated by FDI policy. Foreign players cannot have an inventory-based model to work (in India). They are also prohibited from influencing prices through patterns of cash consumption. Multinational e-commerce companies such as Amazon and Walmart-Flipkart are blatantly breaking the rules and operating uncontrollably in India, ”the SJM said in the resolution passed at its 15th national conclave in Gwalior on December 26.
Amazon is “in the rush” to acquire physical outlets, as well as its e-commerce retail business, the company said, adding that the company’s investments in Shoppers Stop and the More Retail chain are ” major steps in this direction “.
“From 2017-18 to 2019-2020, in three years, Amazon spent Rs 9,788 crore on legal and professional fees in India. Inside sources revealed that the money was channeled through these accounts to bribe government officials in India. “, the SJM alleged.
This proves that licenses and authorizations were obtained by all these e-commerce companies “in a fraudulent manner, using unfair means,” he said.
“This is a very serious matter. Swadeshi Jagran Manch’s Rashtriya Sabha demands that all authorizations granted to these businesses be immediately withdrawn and all their activities declared illegal,” the panel demanded in the resolution.
“The whole matter should be investigated by the CBI and as soon as government officials, including those in senior positions, directly or indirectly benefiting from these companies are identified, they should be put on leave to ensure a fair investigation into the matter and to be punished for their faults. “
The SJM claimed that Amazon and Flipkart occupy 80% of the online marketing space and that the discounts they offer have a “negative” impact on offline markets, neighborhood stores and grocery stores.
“Along with this, people engaged in wholesale and transportation industries are also affected by e-commerce giants … In recent years, mobile stores have been closed due to unfair business practices of e- giants of commerce. “
Affiliate RSS accused Amazon of giving preferential treatment “to a select group of sellers, including Cloudtail and Appario” to harm small retailers, “by circumventing Indian FDI regulations.”
Amazon has collected data from its own sellers to launch competing products and brands such as Solimo and Amazon Basics. Amazon Web Services (AWS) is another operation led by Amazon in India to exploit retailers at very high fees. in the suit to help them improve their presence in the electronic marketplace. Amazon requires small suppliers to keep a substantial minimum quantity of their product line in its fulfillment centers. These suppliers are also required to pay for warehousing, the transport, etc. very high inventory costs for suppliers, ”he argued.