CAIT demands Govt set up panel to look into allegations against Flipkart

Traders' body CAIT on Thursday asked the government to set up a high-level committee to look into alleged circumvention of FDI regulations by Flipkart, an allegation the company rejected. In a statement, the Confederation of All India Traders (CAIT) has levelled several allegations against Flipkart which include "circumventing the law, causing huge GST and Income Tax revenue loss to the government, gross manipulations for controlling inventory, bypassing the FDI policy".

A Flipkart spokesperson, however, rejected the allegations saying "We are fully compliant with the governing FDI and all other applicable laws in the country. We have always been deeply committed to doing business in the right way". "As a marketplace, we enable lakhs of sellers and artisans to connect with millions of consumers across the country. We're proud of our work to make these sellers and artisans successful and help in economic growth and job creation in India," the spokesperson added.

In a letter to Commerce & Industry Minister Piyush Goyal, the traders' body claimed: "It is an open and shut case for distorting Indian retail market to a large extent and damaging the basic fundamental principles of business and economy". "Under the circumstances, we strongly urge you that as a first-step order for the closure of the Flipkart e-commerce business and constitute a high-level committee of tax experts, chartered accountants and senior officials of the Government to make an in-depth study of the balance sheet, income, and expenditure account of the Flipkart, its parent company and other associated or related companies in a time-bound manner".