Informed sources said, the probe agency is looking in to the allegations whether Flipkart has flouted any retail rules during the single-day sale held on October 6 or not. So far the agency has not come across any wrongdoings on behalf of the retail giant but further scrutiny is going on.
Meanwhile, Flipkart has issued a statement saying, ‘We are in complete compliance with the laws of the land and will cooperate with authorities when required.’ The ‘Big Billion Day’ sale of Flipkart drew the attention of the traders’ community, which alleged that the retail giant has violated the online retail norms. Suspecting some foul play, they have also requested the union government to take necessary steps to monitor and regulate online businesses, alleging unfair competition and lack of a level-playing field.
The ‘Big Billion Day’ sale has offered massive discounts on various products, raising concerns among traders that such campaigns would badly affect players in the traditional retail market. As per the company statement, nearly 1.5 million people shopped at its portal and products worth over Rs 600 crore were sold in just 10 hours.
Commerce and industry minister Nirmala Sitharaman had acknowledged that government has received many complaints from traders on Flipkart’s massive discount sale that raked in Rs 600 crore on a single day. The Confederation of All India Traders (CAIT) too demanded a probe into the business model and trade practices of e-commerce companies to give massive discounts during ongoing festive season.
The traders’ body also alleged that such discount sales amounts to predatory pricing and urged the government to take necessary steps to control the same. In recent times, many e-commerce portals have been coming out with steep discount sales, which became a concern for the traders across the country. With the issue racking up further, the central government is closely keeping an eye on these online retail giants to check any malpractices.
ED’s director, Rajan Katoch, is personally monitoring the matter after being directed by the ministry.
Meanwhile, Flipkart has issued a statement saying, ‘We are in complete compliance with the laws of the land and will cooperate with authorities when required.’ The ‘Big Billion Day’ sale of Flipkart drew the attention of the traders’ community, which alleged that the retail giant has violated the online retail norms. Suspecting some foul play, they have also requested the union government to take necessary steps to monitor and regulate online businesses, alleging unfair competition and lack of a level-playing field.
The ‘Big Billion Day’ sale has offered massive discounts on various products, raising concerns among traders that such campaigns would badly affect players in the traditional retail market. As per the company statement, nearly 1.5 million people shopped at its portal and products worth over Rs 600 crore were sold in just 10 hours.
Commerce and industry minister Nirmala Sitharaman had acknowledged that government has received many complaints from traders on Flipkart’s massive discount sale that raked in Rs 600 crore on a single day. The Confederation of All India Traders (CAIT) too demanded a probe into the business model and trade practices of e-commerce companies to give massive discounts during ongoing festive season.
The traders’ body also alleged that such discount sales amounts to predatory pricing and urged the government to take necessary steps to control the same. In recent times, many e-commerce portals have been coming out with steep discount sales, which became a concern for the traders across the country. With the issue racking up further, the central government is closely keeping an eye on these online retail giants to check any malpractices.
ED’s director, Rajan Katoch, is personally monitoring the matter after being directed by the ministry.