Trade group accuses Amazon of violating FDI policy, company denies charges

Traders’ body CAIT on Wednesday accused e-commerce major Amazon of violating FDI policy and Foreign Exchange Management Act (FEMA) norms, a charge which the multinational company denied.

The traders’ body in a letter to Commerce Minister Piyush Goyal alleged that the online retailer has not sought the government’s approval for conducting multi-brand retail activities in India and demanded action and imposition of maximum penalty against the company.

“Documents available in the public domain show that Amazon has made an investment of about Rs 35,000 crore in Amazon India, a make-believe e-commerce marketplace platform, but in reality (it is) indirectly carrying multi-brand retail business,” Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal told reporters.