CAIT calls for action against Blinkit, Instamart, Zepto of misusing FDI

Updated: Nov 14th, 2024


The Confederation of All India Traders (CAIT) on Wednesday claimed the quick commerce markets of India with the likes of Blinkit, Swiggy Instamart, and Zepto, of misusing foreign direct investment (FDI) to control inventories by taking unfair control over suppliers and being involved in predatory pricing.

“In response to multiple complaints filed by the trading community regarding FDI violations and the anti-competitive practices of quick-commerce companies such as Blinkit, Swiggy, and Zepto, we urge both the CCI and the ED to take swift action to prevent any further, irreparable damage to the businesses of small traders,” said BJP MP and CAIT secretary general Praveen Khandelwal.

As per reports, the white paper by CAIT alleges that these violations by quick commerce companies are harmful to small-time traders. The CAIT alleged that unfair practices by these platforms make it impossible for kirana stores to compete with them.

It also alleges that these platforms reportedly have the backing of ₹54,000 crore in FDI, which they use to control supply chains and offer discounts, which the small traders of kirana stores cannot do.

According to the report, the paper states that these practices give a market share of 25-30% to the platforms, which were earlier dominated by the small stores.

It also mentions the platforms violating the Competition Act, of 2002.

The CAIT has reportedly urged the authorities to regulate the FDI and hold the quick commerce platforms accountable, or it can damage India’s small retail ecosystem.

CAIT on Flipkart and Amazon

Apart from this, CAIT head Khandelwal also welcomed the Enforcement Directorate (ED) raids on multiple sellers across the country — linked to e-commerce platforms including Amazon and Flipkart — over alleged money laundering activities on November 7.  

Calling it a ‘step in the right direction’, he said that India is a vibrant democracy governed by the rule of law and its Constitution and no one can be allowed to bypass or disregard these laws.

“CAIT, along with several other trade bodies, has been raising these issues for the past few years. I welcome the Enforcement Directorate’s actions as a step in the right direction. Earlier, the Competition Commission of India also issued penalty notices to Amazon, Flipkart, and their preferred sellers for engaging in anti-competitive practices that have adversely affected small traders and kirana stores,” he emphasised.

The ED conducted a pan-India search against subsidiaries and sellers of the leading e-commerce players. Nearly 24 such seller locations were raided by the regulator in cities like Delhi, Mumbai, Hyderabad, and Bengaluru.

As per sources, the ED investigation was underway related to alleged Foreign Exchange Management Act (FEMA) regulations. The ED raids aim to find evidence related to alleged money laundering activities that may have been facilitated through online e-commerce platforms.

The regulator or e-commerce players did not immediately comment.

(With inputs from syndicated feed)

Gujarat
Your privacy

By clicking “Accept all cookies”, you agree Gujarat Samachar can store cookies on your device and disclose information in accordance with our  Cookie Policy