Highlights

According to SJM, ecommerce corporations are 'blatantly breaking norms.'

Amazon and Flipkart have been charged by the SJM of violating FDI restrictions.

FDI (foreign direct investment) restrictions are being broken, according to SJM.

Why in news ?

The Swadeshi Jagran Manch (SJM) has asked that the government immediately revoke Amazon and Flipkart-licences Walmart's to operate in India, claiming that they are 'blatantly violating norms.' The attire also started demanding a CBI investigation into the operational processes of Amazon, Flipkart-Walmart, and other multinational e-commerce companies in a resolution passed at its national conclave recently, alleging that they are doing business in India 'blatantly' violating FDI (foreign direct investment) regulations.

'The FDI Policy regulates foreign direct investment in multi-brand retail trade. Foreign players are unable to function using an inventory-based paradigm (in India). Cash burning models also prevent them from affecting pricing. Multinational e-commerce giants like Amazon and Walmart/Flipkart are brazenly breaking the law and operating unregulated in India 'On December 26, the SJM's 15th national conclave in Gwalior approved a resolution claiming this.

According to the SJM, Amazon is 'on a spree' to purchase brick-and-mortar retail shops to complement its e-commerce retail efforts, with its investment in the Shoppers Stop and More Retail chain being 'some big moves in this regard.' 'Amazon spent Rs 9,788 crore on legal and professional costs in India in only three years, from 2017-18 to 2019-20. Money is being funnelled through these accounts for bribing officials in India, according to inside sources 'It was claimed. This 'proves' that 'all such e-commerce enterprises' gained licences and approvals 'fraudulently via unfair tactics,' it added. 'This is a major situation. The Swadeshi Jagran Manch's Rashtriya Sabha requests that all licences granted to these firms be revoked immediately, and that all of their operations be deemed unlawful 'In the resolution, the SJM asked.

'The the whole situation should be investigated by the CBI, and as soon as government officers, including those in high positions, who benefit from these businesses, explicitly or implicitly, are recognised, they should be placed on leave to ensure a fair inquiry into the entire issue; and punished for their crimes,' it added.