Chennai: Rajasthan High Court has issued notices to Amazon and Flipkart in a complaint alleging that these e-commerce biggies flouted FDI norms.
The Jodhpur bench of Rajastan High Court on Tuesday issued notices to Amazon and Flipkart on a writ petition filed by the Confederation of All India Traders (CAIT). The court has also issued notice to Union of India. The court will hear the case on October 15 and by then all the parties will have to submit reply of the notice.
CAIT in its writ petition said that the e-commerce players have been making “continuous and repeated violations” of the FDI policy for several years by “engaging in deep discounting, predatory pricing, loss funding and controlling the inventory”. By these practices the marketplaces have been following inventory-based model, which is a clear violation of FDI policy.
CAIT also alleged the deep discounts offered by these companies are in a way influencing the prices, which again is prohibited under FDI policy.
