ADCTA to knock doors of CCI again

Fight for right is still to be continued by partners

All Delhi Computer Traders Association (ADCTA) filed the query few months back to conduct CBI investigation against some e-portals business models. Association was continuously attending two hearings in the court from past few months to figure out favorable and transparent justice.

First hearing was mere introduction, where CCI Chairman instructed all the parties to submit their submission in writing. In the second scheduled hearing CCI heard response by e-tailers through cabinet of advocates in response of Manglani’s query. According to ADCTA, Manglani was not present in both hearings, so there was no one to defend on query raised. Thus, it was felt that CCI panel didn’t referred query submitted by ADCTA and passed order referring Miglani’s query.

But as per current scenario CCI Competition Commission of India (CCI) rejected allegations of unfair business practices against five online retail majors - Flipkart, Snapdeal, Amazon, Jabong and Myntra - as it did not find any prima facie evidence of violations. The order has come as a jolt to the offline traders association, which has now approached CCI, government of India, CBI for investigating these e-tailers selling products at a predatory pricing.

Swarn Singh, secretary of ADCTA (Delhi) commenting on CCI order, “ADCTA had written a letter to CBI for conducting investigation against few e-commerce portals. CBI passed on that query to Ministry of Corporate Affairs and Ministry forwarded that query to Competition Commission of India. That time, CCI was hearing a complaint regarding mis-conduct of e-commerce companies so they added our query forwarded by Ministry of Corporate Affairs with earlier complaint filed by Manglani.”

As of now CCI has passed an order stating that there is nothing wrong in promoting and exclusive sale on anybody’s product online but according to ADCTA this wasn’t their complaint.

Mahinder Aggarwal, President ADCTA said, “Our submitted query is still unheard and we are writing back to CCI for their opinion on our submission and concerns. Also we are going back to CBI as CCI has not discussed our concerns of black Money and tax evasion etc.”

CCI also said in their order that giving discount on any product line is just a choice of seller. But according to partners CCI has been mis-guided by e-commerce companies because according to current scenario of e-portals, discount and restriction on buying quantity is decided by e-commerce companies and not by sellers.

“We repeatedly said we are not against e-commerce, we are against the un-ethical business practice opted by few e-tailers, in other words backdoor entry by FDI in retail. There is a partly solution in this matter and e-commerce companies should consider this in right way, “ commented Swarn Singh.

According to offline market if e-portals companies are only selling platform as they claimed - "They must allow their sellers to raise tax Invoice and sell their product line to traders with no quantity restrictions. In that way, at least our concern of generation of black money & tax evasion will be over.  This on the other hand also is causing huge loss to Government.”

Association has decided to appeal again to hear orders which claim to be equal and transparent business models in favor of whole trader community.

“We have inquired from CCI office about our submission, which is not mentioned in CCI order. They have guided us for Appellate Tribunal for our concerns in writing. We have time of 30 days to file appeal, and we are in process to do that, “added Swarn Singh.

ADCTA respectfully conveyed to government, “We are not able to understand why Sh. Narinder Modi led Government is protecting business of few e-tailers on the livelihood of millions of traders, employees and their families. We on behalf of millions of traders request government that they must act now, otherwise it will be too late and huge un-employment will generate by govt’s Digital India Vision.