Traders’ body CAIT urges Piyush Goyal to modify Press Note 2 on FDI to curb alleged e-commerce malpractices

Traders’ body Confederation of All India Traders (CAIT), which represents 8 crore traders across 40,000 trade associations in India, has urged Commerce Minister Piyush Goyal for modification in the provisions of the 2018 Press Note 2 on FDI policy by the Department for Promotion of Industry and Internal Trade (DPIIT) to curb alleged malpractices by e-commerce marketplaces in India. Proposing amendments in a communication, CAIT requested Goyal to prohibit direct or indirect equity participation or control over inventory by marketplace entities, to create a level playing field for all stakeholders, and prohibit FDI in inventory-based e-commerce and multi-brand retail in food items. The association has also sought a periodic audit of e-commerce companies for compliance check and also urged for mandatory registration of every e-commerce company with DPIIT.